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Week 10 Recitation Assignment

The document presents an optimization model for transportation costs and shipments between plants and warehouses. It includes data on transportation costs per 1000 truckloads between 5 plants and 6 warehouses, as well as shipment capacity, plant capacity, and fixed operating costs for each plant. The model contains decision variables for shipments from each plant to each warehouse, and constraints on shipments not exceeding plant or warehouse capacities.

Uploaded by

Rushil Surapaneni
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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132 views10 pages

Week 10 Recitation Assignment

The document presents an optimization model for transportation costs and shipments between plants and warehouses. It includes data on transportation costs per 1000 truckloads between 5 plants and 6 warehouses, as well as shipment capacity, plant capacity, and fixed operating costs for each plant. The model contains decision variables for shipments from each plant to each warehouse, and constraints on shipments not exceeding plant or warehouse capacities.

Uploaded by

Rushil Surapaneni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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A B C D E F G H I J K

1 OneTwoThree (with Fixed Costs) G6: =-SUMPRODUCT(D6:F6,D18:F18)


Note the minus sign preceding SUMPRODUCT.
2
3 Product 1 Product 2 Product 3 Variable Coefficients
4 Production Quantity 0.000 22.000 72.000 Decision Variables
5 Unit Contribution $35 $50 $40 $3,980 Total Contribution Objective Function
6 Fixed Cost $1,000 $500 $1,500 ($2,000) Total Fixed Costs Constraints
7 $1,980 Net Contribution
8

Resource Consumption LHS RHS


9
per Unit of Production Collection (Resource
(Resource Availability)
10 Product 1 Product 2 Product 3 Consumption)
11 Resource A 2 3 6 498 500
12 Resource Resource B 8 2 3 260 400
13 Resource C 4 7 2 298 300
14
15 LINKING CONSTRAINTS

16 Binary Variable (BV) for Production


(0=No; 1=Yes)
17 D20: =D19*D18 ; copied to E20:F20 Product 1 Product 2 Product 3
18 0 1 1
19 100 100 100 Big M
20 0 100 100 Upper Bound on Production = (Big M)*(BV)
21
A B C D E F G H I J K
1 OneTwoThree (with Fixed Costs AND Threshold Constraints)
2
3 Product 1 Product 2 Product 3 Variable Coefficients
4 Production Quantity 0.000 24.000 66.000 Decision Variables
5 Unit Contribution $35 $50 $40 $3,840 Total Contribution Objective Function
6 Fixed Cost $1,000 $500 $1,500 ($2,000) Total Fixed Costs Constraints
7 $1,840 Net Contribution
8

Resource Consumption LHS RHS


9
per Unit of Production Collection (Resource
(Resource Availability)
10 Product 1 Product 2 Product 3 Consumption)
11 Resource A 2 3 6 468 500
12 Resource Resource B 8 2 3 246 400
13 Resource C 4 7 2 300 300
14
15 LINKING CONSTRAINTS

16 Binary Variable (BV) for Production


(0=No; 1=Yes)
17 Product 1 Product 2 Product 3
18 0 1 1
19 100 100 100 Big M
20 D20: =D19*D18 ; copied to E20:F20 0 100 100 Upper Bound on Production = (Big M)*(BV)
21 D21: =D22*D18 ; copied to E21:F21 0 24 24 Lower Bound on Production = (Threshold)*(BV)
22 24 24 24 Threshold (if produced)
A B C D E F G H I J K
1 OneTwoThree (without Fixed Costs and without Threshold Constraints but with a Logical Constraint)
2
3 Product 1 Product 2 Product 3 Total Variable Coefficients
4 Production Quantity 0.000 22.000 72.000 Contribution Decision Variables
5 Unit Contribution $35 $50 $40 $3,980 Objective Function
6 Constraints

Resource Consumption LHS RHS


7
per Unit of Production Collection (Resource
(Resource Availability)
8 Product 1 Product 2 Product 3 Consumption)
9 Resource A 2 3 6 498 500
10 Resource Resource B 8 2 3 260 400
11 Resource C 4 7 2 298 300
12
13 LINKING CONSTRAINTS

14 Binary Variable (BV) for Production


(0=No; 1=Yes)
15 Product 1 Product 2 Product 3
16 0 1 1
17 100 100 100 Big M
18 0 100 100 Upper Bound on Production = (Big M)*(BV)
19
20 LHS
Product 1 Product 2 Product 3 RHS
21 Collection
Logical
22 At most 2 products. 1 1 1 2 2
Constraint
A B C D E F G H I J K L M N O
1 Ben & Harry's (with Fixed Costs)
2
3 TRANSPORTATION COSTS ($M) PER 1000 TRUCKLOADS Coefficients
4 TO Warehouse Decision Variables
5 A B C D E F Objective Function
6 1 67 16 27 65 46 112 Constraints
7 2 58 78 39 4 20 48
FROM
8 3 17 96 57 20 38 32
Plant
9 4 15 54 22 42 27 93 L18: =M18*N18
10 5 37 66 28 20 12 72 copied to L19:L22
11
12 LINKING CONSTRAINTS
13
14 Plant's
15 SHIPMENTS (000 truckloads) Plant's Plant's Binary Plant's
Shipped Actual Capacity Variable Fixed Operating Costs
16 TO Warehouse Out Capacity if Built (0=Not Built; if Built
17 A B C D E F (000) (000) (000) 1=Built) ($M)
18 1 0 8 12 0 0 0 20 21 21 1 306
19 2 0 0 0 0 0 0 0 0 24 0 140
FROM
20 3 10 0 0 6 0 11 27 27 27 1 200
Plant
21 4 0 0 0 0 0 0 0 0 22 0 164
22 5 0 0 0 0 7 0 7 31 31 1 88

Shipped In Upper Bound Big M
23 10 8 12 6 7 11
(000) (Big M)*(BV)

24 = = = = = = =
25 Demand (000) 10 8 12 6 7 11
26
27 $594 Total Fixed Operating Costs ($M)
28 $1,178 Total Transportation Costs ($M)
29 $1,772 Total Costs ($M)
A B C D E F G H I J K L M N O P Q R
1 Ben & Harry's (with Fixed Costs AND Threshold Constraints)
2
3 TRANSPORTATION COSTS ($M) PER 1000 TRUCKLOADS Coefficients
4 TO Warehouse Decision Variables
5 A B C D E F Objective Function
6 1 67 16 27 65 46 112 Constraints
7 2 58 78 39 4 20 48
FROM
8 3 17 96 57 20 38 32
Plant K18: =J18*Q18 O18: =P18*Q18
9 4 15 54 22 42 27 93 copied to K19:K22 copied to O19:O22
10 5 37 66 28 20 12 72
11
12 LINKING CONSTRAINTS
13
14 Plant's
15 SHIPMENTS (000 truckloads) Plant's Plant's Plant's Plant's Binary Plant's
Threshold Actual Shipped Actual Capacity Variable Fixed Operating Costs
16 TO Warehouse if Built Threshold Out Capacity if Built (0=Not Built; if Built
17 A B C D E F (000) (000) (000) (000) (000) 1=Built) ($M)
18 1 0 8 10 0 0 0 18 18 18 21 21 1 306
19 2 0 0 0 0 0 0 18 0 0 0 24 0 140
FROM
20 3 7 0 0 0 0 11 18 18 18 27 27 1 200
Plant
21 4 0 0 0 0 0 0 18 0 0 0 22 0 164
22 5 3 0 2 6 7 0 18 18 18 31 31 1 88

Shipped In Threshold Lower Bound Upper Bound Big M
23 10 8 12 6 7 11
(000) (if built) (Threshold)*(BV) (Big M)*(BV)

24 = = = = = = =
25 Demand (000) 10 8 12 6 7 11
26
27 $594 Total Fixed Operating Costs ($M)
28 $1,240 Total Transportation Costs ($M)
29 $1,834 Total Costs ($M)
A B C D E F G H I J K L M N O P Q R S T
1 Ben & Harry's (with Fixed Costs AND Threshold Constraints AND a Logical Constraint)
2
3 TRANSPORTATION COSTS ($M) PER 1000 TRUCKLOADS Coefficients
4 TO Warehouse Decision Variables
5 A B C D E F Objective Function
6 1 67 16 27 65 46 112 Constraints
7 2 58 78 39 4 20 48
FROM
8 3 17 96 57 20 38 32
Plant K18: =J18*Q18 O18: =P18*Q18
9 4 15 54 22 42 27 93 copied to K19:K22 copied to O19:O22
10 5 37 66 28 20 12 72
11
12 LINKING CONSTRAINTS
13
14 Plant's
LOGICAL
15 SHIPMENTS (000 truckloads) Plant's Plant's Plant's Plant's Binary Plant's
CONSTRAINT
Threshold Actual Shipped Actual Capacity Variable Fixed Operating Costs
16 TO Warehouse if Built Threshold Out Capacity if Built (0=Not Built; if Built If 3,
17 A B C D E F (000) (000) (000) (000) (000) 1=Built) ($M) then 2.
18 1 0 8 10 0 0 0 18 18 18 21 21 1 306 0
19 2 0 0 2 6 7 3 18 18 18 24 24 1 140 -1
FROM
20 3 10 0 0 0 0 8 18 18 18 27 27 1 200 1
Plant
21 4 0 0 0 0 0 0 18 0 0 0 22 0 164 0
22 5 0 0 0 0 0 0 18 0 0 0 31 0 88 0

Shipped In Threshold Lower Bound Upper Bound Big M
23 10 8 12 6 7 11 0
(000) (if built) (Threshold)*(BV) (Big M)*(BV)

24 = = = = = = =
25 Demand (000) 10 8 12 6 7 11 0
26
27 $646 Total Fixed Operating Costs ($M)
28 $1,210 Total Transportation Costs ($M)
29 $1,856 Total Costs ($M)
A B C D E F G H I J K L M
1 StopIt (with Fixed Costs)
2
3 Total Required
=
4 Machine 1 Machine 2 Machine 3 Machine 4 Machine 5 Machine 6 Production Production Variable Coefficients
5 Production Quantity 500.000 600.000 700.000 0.000 0.000 0.000 1800.000 = 1800 Decision Variables
6 Variable Cost $21 $23 $25 $24 $20 $26 $41,800 Total Variable Cost Objective Function
7 Fixed Cost $1,000 $950 $875 $850 $800 $700 $2,825 Total Fixed Cost Constraints
8 $44,625 Total Cost
9
10 LINKING CONSTRAINTS
11 Binary Variable (BV) for Production (0=No; 1=Yes)
12 Machine 1 Machine 2 Machine 3 Machine 4 Machine 5 Machine 6
13 1 1 1 0 0 0
14 500 600 750 400 600 800 Big M
15 C14: =C13*C12 ; copied to D14:H14 500 600 750 0 0 0 Upper Bound on Production = (Big M)*(BV)
16 250 250 250 0 0 0
17 250 250 250 250 250 250 Lower Bound Threshold
18
19 LOGICAL CONSTRAINTS LHS RHS
20 Machine 1 Machine 2 Machine 3 Machine 4 Machine 5 Machine 6 Collection
21 0 0 0 -1 1 0 0 0
22 1 1 1 1 1 1 3 3
A B C D E F G H I J
1 MegaMart (with Fixed Costs)
2 Variable Coefficients
3 Week 1 Week 2 Week 3 Week 4 Decision Variables
4 Unit Ordering Cost $125 $125 $125 $125 Objective Function
5 Fixed Cost of Delivery $50 $50 $50 $50 Constraints
Unit Holding Cost
6 $0.15 $0.15 $0.15 $0.15
($ per unit per week)
7 .
8 Week 1 Week 2 Week 3 Week 4 Subtotal
9 Weekly Ordering Cost $750.00 $0.00 $250.00 $500.00
10 Weekly Fixed Cost $50.00 $0.00 $50.00 $50.00
11 Weekly Inventory Cost $15.00 $18.75 $7.50 $11.20

12 Total Cost $0.00


(Production + Inventory)
13
14 Week 1 Week 2 Week 3 Week 4
15 Beginning Inventory Level 0
16 + + + + +
17 Batches Ordered 0.000 0.000 0.000 0.000 100 Batch Size
18 Amount Ordered
19
20 Demand Forecast 400 150 200 350
21 = = = = =
22 Ending Inventory Level 400 150 200 350
23
24 Week 1 Week 2 Week 3 Week 4
25 Max Ending Inventory Level 400 400 400 400
26 Min Ending Inventory Level 25 25 25 25
27
28 LINKING CONSTRAINTS
29 Binary Variable (BV) for Order (0=No; 1=Yes)
30 Week 1 Week 2 Week 3 Week 4
31 0 0 0 0
32 12 12 12 12 Big M
33 0 0 0 0 Upper Bound on Order = (Big M)*(BV)
A B C D E F G H I J K L M
1 One-to-Five (with Fixed Costs)
2
3 Product 1 Product 2 Product 3 Product 4 Product 5 Variable Coefficients
4 Production Quantity 0.000 3155.000 0.000 1503.000 2130.000 Decision Variables
5 Unit Contribution $53 $50 $35 $32 $38 $286,786 Total Contribution Objective Function
6 $286,786 Net Contribution
7

8 Resource Consumption per Unit of Production LHS RHS


Collection (Resource
(Resource Availability)
9 Product 1 Product 2 Product 3 Product 4 Product 5 Consumption)
10 Resource A 20 15 10 8 5 69,999 70,000
11 Resource B 28 24 18 12 16 127,836 130,000
Resource
12 Resource C 8 8 4 4 6 44,032 47,500
13 Resource D 75 60 50 65 100 499,995 500,000
14
15 LINKING CONSTRAINTS
16 Binary Variable (BV) for Production (0=No; 1=Yes)
17 Product 1 Product 2 Product 3 Product 4 Product 5
18 0 1 0 1 1
19 10000 10000 10000 10000 10000 Big M
20 0 10000 0 10000 10000 Upper Bound on Production = (Big M)*(BV)
21 0 1500 0 1500 1500
A B C D E F G H I J K L
1 All About that Bass (with Fixed Costs)
2
3 TRANSPORTATION COSTS PER 1000 UNITS Coefficients
4 TO Warehouse Decision Variables
5 A B C Objective Function
6 1 $35 $30 $45 Constraints
7 2 $45 $40 $50
FROM
8 3 $70 $65 $50
Plant
9 4 $20 $45 $25
10 5 $65 $45 $45
11
12 LINKING CONSTRAINTS
13
14 Plant's
15 SHIPMENTS (000) Plant's Plant's Binary Plant's
Shipped Actual Capacity Variable Fixed Operating Costs
16 TO Warehouse Out Capacity if Open (0=Closed; if Open
17 A B C (000) (000) (000) 1=Open) ($000)
18 1 20 20 0 40 40 40 1 $1,325
19 2 0 0 0 0 0 30 0 $1,100
FROM
20 3 0 0 0 0 0 50 0 $1,500
Plant
21 4 20 0 0 20 20 20 1 $1,200
22 5 0 5 35 40 40 40 1 $1,400

Shipped In Upper Bound Big M
23 40 25 35
(000) (Big M)*(BV)

24 = = = =
25 Demand (000) 40 25 35
26
27 $3,925 Total Fixed Operating Costs ($000)
28 $3,500 Total Transportation Costs ($000)
29 $7,425 Total Costs ($000)

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