Institute of Management Technology, Nagpur

BATCH PGDM (2014-16)

Term-II
ASSIGNMENT Section E
Subject Management Science Models
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Logistics Models
Capacitated Plant Location Model: CAPLOC
Background
The capacitated plant location model is a generalization of the transportation model.
Capacitated plant location problem allows greater latitude of decision making in that
the points of origin (plant locations) are variable. Manufacturers and wholesale
businesses are likely to encounter problems of this sort in matching existing customer
demand to product availability and minimizing transportation costs.
The Problem in Words
Your firm has a choice of five locations to operate a manufacturing facility and seven
customers exist with a known demand for your product. Each potential plant location
has an associated monthly operating cost, and shipping routes to the demand cities have
varying costs. In addition, each potential plant will have a shipping capacity that must
not be exceeded. You need to determine what plant(s) to open and how much of a
product to send from each open plant to each customer to minimize total shipping costs
and fixed plant operating costs.
Find the optimal solution.
Note Answer/data found same shall be considered as copied & will be graded Zero.
Submission date for the above said assignment is Friday, 12.12.2014, latest by 5.00
pm in APO office.
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