NINGHISHETTY NIKITHA

EMGT 5632 – Logistics Management

Homework 5
Due date: 11/20
Student Name: NINGHISHETTY NIKITHA
Student ID:

Goutte is a Canadian company manufacturing and distributing soft drinks. Manufacturing plants are
used to satisfy the demand of sales districts. The production process makes use of water, available
anywhere in Canada in an unlimited quantity at a negligible cost, and of sugar extracts which
compose a modest percentage of the total weight of the finished product. For this reason, supply
costs are negligible compared to finished product distribution costs. The management would like to
determine the plant configuration that minimizes the sum of weighted transportation costs and
fixed facility opening costs. The maximum acceptable distance between a potential plant and a sales
district is 75 km. Demand can be split among facilities. The fixed costs and capacities of potential
plant locations are given in Table 1 and sales district demands are given in Table 2. Table 3 provides
per-truckload-transportation costs between potential plants and sales districts, and Table 4
provides distances.
a) Draw a graph (network representation) of this logistics network, where the potential plant
locations and sales districts form the nodes of the network and arcs represent available
connections between the nodes.
NINGHISHETTY NIKITHA

Capacity Demand
Potential plant location
(hectolitres) Sales district (hectolitres)

22000 Brossard
Brossard 14000

24000 Granby

28000 Lassalle Granby 10000

30000 Mascouche
Sainte-julie 8000

20000 Montreal

26000 Saint-Julie Sherboke

12000

28000 Sherbrooke

30000 Terrebonne
Valleyfield 10000

20000 Valleyfield

21000 Verdun Verdun 9000

NINGHISHETTY NIKITHA

b) Formulate a mixed integer program appropriate for this problem and include it in
your homework submission. This should be written using the type of math modeling
notation we use in the lecture PPT (e.g., dicijXij); not in Excel.

Minimize: Z = Σ(Σ(C_ij * D_i * X_ij)) + Σ(F_j * Y_j)

Subject to:
1. Σ(X_ij) = 1 for all i (each district's demand must be satisfied)
2. Σ(X_ij) <= Y_j for all j (capacity constraint)
3. Σ(X_ij) <= 1 for all i (a district can be served by at most one plant)
4. X_ij <= Y_j for all i, j (binary constraint)
5. D_i * Σ(X_ij) <= U_i for all i (maximum distance constraint)
where:
- Z: Objective function (minimize total cost)
- C_ij: Per-truckload transportation cost between plant j and district i
- D_i: Demand of district i
- X_ij: Fraction of demand from district i assigned to plant j
- F_j: Fixed cost of opening plant j
- Y_j: Binary decision variable indicating whether to open plant j (1 if open, 0 if closed)
- U_i: Maximum acceptable distance between plant j and district i

c) Implement and solve this model in Excel, provide a graphical representation of the
solution (similar to how we have depicted solutions in class). Note that because
demand can be split among plants if needed, the edges in your graph should be
labeled with decision variable values representing the fraction of demand from a
sales district that has been assigned to a particular plant.

ANSWER IN EXCEL