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The Eighth Method Company makes several lines of environmentally friendly cleaning materials. They produce them at 3 different locations in North America. If they choose
The Eighth Method Company makes several lines of environmentally friendly cleaning materials. They produce them at 3 different locations in North America. If they choose to produce cleaners at a particular location then they will incur a fixed cost for tooling and equipping that location for production of cleaners; if they choose not to produce cleaners at a production location, then they will not incur the fixed cost there. Each production location has a maximum capacity that can be installed for cleaner production. Finished products will be sent to warehouses in the United States where they will then be sent on to 4 different customers. They have three possible warehouse locations identified in the United States. Costs for shipping a pallet of cleaner from production locations to warehouse locations are given in the data in the table below. Note that due to packing and shipping restrictions, there is a maximum capacity that can be shipped from a specific production facility to a specific warehouse while there is also a minimum capacity for any production-warehouse shipping pair that is used; that is, Eighth Method can choose to not use an arc, but if they do choose to use any given arc then it must have a minimum number of units shipped on that arc. The specific numbers are given in the data. As with the production facilities, if a warehouse is used it incurs a fixed cost. Each of the 4 customers has a stated demand for cleaners to sell to their customers. The cost of shipping from/to each warehouse/customer pair is given in the data. Note that the same type of shipping restrictions exist for each warehouse-customer pair with a min (if used) and max. Eighth Method would like to find a way to satisfy customer demand in the least cost manner. NOTE: You are required to model this using the network supermodel approach
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