200000 8 1 1 32767 0

Customer 1 Customer 2 Customer 3 Customer 4

Warehouse 1 1 3 0.5 4
Warehouse 2 2.5 5 1.5 2.5
Number of Products shipped
Customer 1 Customer 2 Customer 3 Customer 4 Total Shipped
Warehouse 1 35000 22000 3000 0 60000
Warehouse 2 0 0 15000 30000 45000
Total Received 35000 22000 18000 30000
Ordered 35000 22000 18000 30000
Total Shipping Cost 200000
Available
60000
80000
Input - Costs, Capacities, Demands
Demand Region Fixed
Production and Transportation per 1 M Units
Supply Region N. America S. America Europe Asia Africa Cost ($)
N. America 81 92 101 130 115 6000
S. America 117 77 108 98 100 4500
Europe 102 105 95 119 111 6500
Asia 115 125 90 59 74 4100
Africa 142 100 103 105 71 4000
Demand 12 8 14 16 7

Decision Variables
Demand Region Plants
Production Allocation (Million Units)
Supply Region N. America S. America Europe Asia Africa (1=open)
N. America 3.55E-15 0 0 0 0 0
S. America 12 8 0 0 0 0
Europe 0 0 0 0 0 0
Asia 0 0 4 16 0 0
Africa 0 0 10 0 7 0
12 8 14 16 7 0
Constraints
Supply Region Excess Capacity
N. America -3.55E-15
S. America 0
Europe 0
Asia 0
Africa 3
N. America S. America Europe Asia Africa
Unmet Demand 0 0 0 0 0

Objective function
Cost = 23751
 Low Fixed High
Capacity Cost ($) Capacity
10 9000 20
10 6750 20
10 9750 20
10 6150 20
10 6000 20
57

Plants 971524473804
(1=open)
0
1
0
1
1
18900 18900
4851
Input - Production and Transportaion Costs for
Annual Fixed
Lahore Karachi Peshawar Queeta
Cost
20000 Units 6 5.5 5.6 6.1
Plant:
40000 Units
Plant: 10 9.2 9.3 10.2
Transportation Cost:
Punjab 211 232 238 299
Sindh 232 212 230 280
KPK 240 230 215 270
Balochistan 300 280 270 225

Solution
Input - Production and Transportaion Costs for
Annual Fixed 200000 400000 Units
Cost Units Plant: Plant:
Lahore 6,000 10,000
Karachi 5,500 9,200
Peshawar 5,600 9,300
Queeta 6,100 10,200
Transportation Cost:
Lahore Karachi Peshawar Queeta
Punjab 211 232 238 299 Plants
Sindh 232 212 230 280 Lahore Large
KPK 240 230 215 270 Quetta Small
Balochistan 300 280 270 225
Demand: 180 120 110 100

Decision Variables 200 400

Demand Region Plants Plants
Production Allocation (Million Units)
Supply Region Punjab Sindh KPK Balochistan (1=open) (1=open)
Lahore 180 120 100 0 0 1
Karachi 0 0 0 0 0 0
Peshawar 0 0 0 0 0 0
Queeta 0 0 10 100 1 0
Demand: 180 120 110 100 6100 10000
Constraints Plant Cost: 16100
Access Transportation Cost: 114820
Lahore 0 Total: 130920
 Karachi 0
Peshawar 0
Queeta 90
Punjab Sindh KPK Balochistan
Unmet Demand 0 0 0 0

Objective function
Cost = 130920
 Small Plants
Plant Cost: 16100 Lahore Plant Cost: 17100
Transportation Cost: 114820 Karachi Transportation Cost: 114170
Total: 130920 Peshawar Total: 131270

600

6,000 10,000
5,500 9,200
5,600 9,300
6,100 10,200

15500
118860
134360
Objective Function
Rat Duck Gun
Profit/Unit 100 300 50 Total Profit
Order Size 94 54 0 25600
Constraints Resources
Capital 300 1200 120 93000 93000
Storage 0.5 1 0.5 101 101
 Magic Square Row Sum
4 3 8 15
2 7 6 15
9 5 1 15
Column Sum 15 15 15 25