10.9 a.

By introducing nonnegative pjk, qjk and rji, sji, we can formulate a linear
program (LP).
i) LP for x-coordinate
Min f(x,y) = 4(p12 + q12) + 8(r11 + s11) + 6(r12 + s12) + 5(r13 + s13) +4(r14
+s14)+3(r15 +s15)+2(r21 +s21)+3(r22 +s22) + 4(r23 + s23) + 6(r24 + s24) + 6(r25
+ s25)

b.
subject to:
x1 x2 + p12 q12 x1 r11 + s11 =10 x1 r12 + s12 =10 x1 r13 + s13 =15 x1
r14 + s14 =20 x1 r15 + s15 =25
=0
all ps, qs, rs and ss 0
ii) LPfory-coordinate Formulation in i) above can be by replacing the xs
and as by
Note: Problem (a) can also be formulated as follows:

Min f(x) = 4|x1-x2| + 8|x1-10| + 6|x1-10| + 5|x1-15| + 4|x1-20|+ 3|x1-25| +

2|x2-10| + 3|x2-10| + 4|x2-15| + 6|x2-20| + 6|x2-25|

Min f(y) = 4|y1-y2| + 8|y1-25| + 6|y1-15| + 5|y1-30| + 4|y1-10|+ 3|y1-25| +

2|y2-25| + 3|y2-15| + 4|y2-30| + 6|y2-10| + 6|y2-25|

Min f(x1,x2) = 4[(x1-x2)2 + (y1-y2)2]1/2 + 8[(x1-10)2 + (y1-25)2]1/2+ 6[(x1-

10)2 + (y1-15)2]1/2 + 5[(x1-15)2 + (y1-30)2]1/2 + 4[(x1-20)2 + (y1-10)2]1/2 +
3[(x1-25)2 + (y1-25)2]1/2 + 2[(x2-10)2 + (y2-25)2]1/2 + 3[(x2-10)2 + (y2-
15)2]1/2
+ 4[(x2-15)2 + (y2-30)2]1/2+ 5[(x2-20)2 + (y2-10)2]1/2 + 5[(x2-25)2 + (y2-
25)2]1/2
x2 x2 x2 x2 x2
r21 + s21 =25 r22 + s22 =15 r23 + s23 =30 r24 + s24 =10 r25 + s25 =25

used forys and bs, respectively.

the y-coordinate problem
10-7
10-8
10.10
wij
(ai) = (0, 5, 10, 5, 20, 5) (bi) = (10, 0, 0, 10, 10, 20)

i
vjk
k

1
2
3
4
5
6
j
1
4
0
2
0
5
5
j
1
2
3

1
0
5
1

2
0
0
0
0
10
1
2
5
0
4

3
0
0
10
10
2
a. Min f(x) = 5[|x1-x2| + |y1-y2|] + 1[|x1-x3| + |y1-y3|] + 4[|x2-x3| + |y2-
y3|] + 4[|x1-0| + |y1-10|] + 2[|x1-10| + |y1-0|] + 5[|x1-20| + |y1-10|] +
5[|x1-5| + |y1-20|] + 10[|x2-20| + |y2-10|] + 1[|x2-5| + |y2-20|] +
10[|x3-10| + |y3-0|] + 10[|x3-5| + |y3-10|] + 2[|x3-20| + |y3-10|] +
5[|x3-5| + |y3-20|]

b. Min f(x) = 5[(x1-x2)2 + (y1-y2) 2]1/2 + 1[(x1-x3) 2 + (y1-y3) 2] 1/2+

4[(x2-x3) 2 + (y2-y3) 2] 1/2 + 4[(x1-0) 2 + (y1-10) 2] 1/2 + 2[(x1-10) 2 +
(y1-0) 2] 1/2 + 5[(x1-20) 2 + (y1-10) 2] 1/2 + 5[(x1-5) 2 + (y1-20) 2] 1/2 +
10[(x2-20) 2 + (y2-10) 2] 1/2 + 1[(x2-5) 2 + (y2-20) 2] 1/2 + 10[(x3-10) 2
+ (y3-0) 2] 1/2 + 10[(x3-5) 2 + (y3-10) 2] 1/2 + 2[(x3-20) 2 + (y3-10) 2]
 1/2
+ 5[(x3-5) 2 + (y3-20) 2] 1/2

5
3
1
4
0

10.11
10-9

No. of Coffee Shop Visitors

People/Day (70%)
P1 50 35

P2 30 21

P3 70 49

P4 60 42

(20,70) (30,40)

(50,100)

(90,30)

Case I: One Coffee ShopThe problem reduces to a 1 facility location

problem

(x*,y*) = (50,70)TC(1) = 5,000(1) + 0.25[35(30) + 21(50) + 49(80) +

42(30)] = 6,820

Case II: n Coffee Shops (n 2)When we have more than one coffee
shop, the total cost
TC(n 2) = 5,000(n) + travel cost 10,000
Which is greater than TC(1) = 6,820, therefore it does not make sense to
have more than one coffee shop.

ai w i w
i

2 3 3
0 5 5
3 2 5
0 1 6
5 4 9
0 2 8

9 4 1
0 9 4
7

w
bi w i
i

3 4 4
0 9 9
4 2 7
0 1 0

1
7 3
0
0 5
5

1 4 1
0 2 4
0 7
10-10
10.12

(0,10) (0,0)

(30,25) (20,20)

(15,10)
5
TC n 5,000n i j i j i ij

n
10 f x a y b z i 1 j 1

m = # of maintenance machinesfi = maintenance requirement frequency

zij = {0,1}

a. For n = 1: 1 facility location problem (x*,y*) = (0,10)TC(1)

 =5,000(1)+12(10)[10(10)+16(0)+8(45)+5(15)+12(30)] =
112,400/year = 9,366.7/month

b. For n = 2: Alternate location-allocation method Assume initial

locations X1 = (0,0), X2 = (30,25)

i. Allocation

. X1 {P1, P2, P4}

. X2 {P3, P5}

ii. LocationX1 = (0,10), X2 = (20,20) by half-sum method

a ww
i i
i

2 2
0
6 6
1 3
5
5 1
2 1 4
0 2 3

3
8 5
0 1

b ww
i
i i

1 1
0 0 0

1 2 3
0 1 1

2 1 4
0 2 3

2 8 5
5 1
iii. Allocation
. X1 {P1, P2, P4}

. X2 {P3, P5}

The result is the same as the initial locations.

Assign {P1, P2, P4} to X1 at (0,10) and {P3, P5}to X2 at (20,20) TC(2)
=5,000(2)+12(10)[10(10)+16(0)+8(15)+5(15)+12(0)]
= 45,400/year = 3,783.3/month 10.13 Assume the rental cost is incurred
monthly.

a. 1 distribution center B is chosen with TC = 22,600

b. 2 distribution centersWe need to select one more facility in

conjunction with B. Locate second facility at D TC = 22,600
6,300 = 16,300

c. 3 distribution centersNet Savings NS(A) = 0 5,000 = -5,000

NS(C) = 0 6,000 = -6,000 NS(E) = 0 8,000 = -8,000 No
addition center is justified. The distribution centers will be located
 at B and D with total cost $16,300.

10-11

A B C D E
Total 22,60 28,70
23,100 33,500 43,000
Cost 0 0
Additional Customer
Facility Served Net Savings (monthly)

A 2 4,200 5,000 = -1,800

C 2,3 600 + 300 6,000 = -5,100
4,800 + 3,500 2,000 =
D 2,3
6,300

E - -8,000 = -8,000
10-12
10.14 The monthly rental costs for facilities A, B, D, and D are $4,167,
$6,250, $6,000, and $3,750, respectively.

a. 1 warehouse Select site C, TC = 88,0