Title: Cost Optimization using Distribution

Center Location for a Laptop Company

Scope:
A Laptop company has three manufacturing plants at Faridabad, Chennai and Bangalore then
the product is shipped through three distribution centers Kharagpur, Nashik and Bhopal. The
weekly supply capacity of Faridabad, Chennai and Bangalore are 1153, 998 and 563
respectively. There are 8 demand centers at Mumbai, Chennai, Bangalore, Kolkata, Hyderabad,
Ahmedabad, Delhi and Kanpur with weekly demand of 498, 245, 150, 310, 279, 191, 553 and
127 respectively.
Modelling Technique:
Optimization using Distribution Center Location using Linear Programming
Objective:
The company wants to open a new Distribution center in south India. They have shortlisted two
potential locations as Bangalore and Chennai. The objective is to find the best location for new
distribution center to minimize the total shipping cost.