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The Terraco Motor Company has produced a lightweight, all - terrain vehicle code - named J 9 9 Terra for the military. The company
The Terraco Motor Company has produced a lightweight, allterrain vehicle codenamed J
Terra" for the military. The company is now planning to sell the Terra to the public. It has five
plants that manufacture the vehicle and four regional distribution centers. The company is unsure
of public demand for the Terra, so it is considering reducing its fixed operating costs by closing
one or more plants, even though it would incur an increase in transportation costs. The relevant
costs for the problem are provided in the following table. The transportation costs are per thousand
vehicles shipped; for example, the cost of shipping vehicles from plant to warehouse
is $
GER PROGRAMMING
Formulate and solve an integer programming model for this problem to assist the company
in determining which plants should remain open and which should be closed and the number of
vehicles that should be shipped from each plant to each warehouse to minimize total cost.
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