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Cool Wipes Solution

The document presents an optimization problem to determine the optimal allocation of production across multiple plants to meet regional demand for wipes and ointments at minimum cost. It provides data on regional demand, transportation costs between regions and plants, as well as the fixed and variable costs for each plant. The objective is to allocate production across plants to minimize total costs while meeting all demand.

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Tooba
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56 views13 pages

Cool Wipes Solution

The document presents an optimization problem to determine the optimal allocation of production across multiple plants to meet regional demand for wipes and ointments at minimum cost. It provides data on regional demand, transportation costs between regions and plants, as well as the fixed and variable costs for each plant. The objective is to allocate production across plants to minimize total costs while meeting all demand.

Uploaded by

Tooba
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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PART A PART B

Locations Qty X Y
Position 0 100 0.00 1.00
Position 1 50 1.00 0.00
Total 150

COG Coordinates 0.33 0.67


Locations Qty X Y Dist Wgt Dist
Position 0 100 0.00 1.00 0 0.00
Position 1 50 1.00 0.00 1 70.71
Total 150 Total 70.71

Weber Coordiantes 0 1
Center of Gravity Method

Store Location Load X Y Store Location


Cleveland 15 11 22 Cleveland
Columbus 10 10 7 Columbus
Cincinnati 12 4 1 Cincinnati
Dayton 4 3 6 Dayton
Total 41 Total

COG Coordinates 7.9 10.6 Site O


Mansfield
Dist
Site Coordinates 8.00
X Y 7.07
Mansfield 11 14 14.76
Springfield 6 6.5 11.31
Total
Weber Method

Qty X Y Site Coordinates


15 11 22 X Y
10 10 7 Mansfield 11 14
12 4 1 Springfield 6 6.5
4 3 6
41

Site Options Options


Springfield Mansfield
Wgt Dist Dist Wgt Dist Total Wgt Distance 413
120 16.29 244
71 4.03 40 Min. Wgt Distance 367
177 5.85 70
45 3.04 12 Best Site Option Springfield
413 Total 367
Weber Coordinates 6 6.5
Options
Springfield
367
Q No: 03 Factor Rating for Speedy Logistics Company

Factor Scores (1-5 scale)

Factors Factor Weighted Location 1


Proximity to AirPort 40 5
Proximity to Road Acccess 30 4
Proximity to Labour Source 10 3
Size of facility 20 2

Computing Weighted Factor Scores and Overall Scores for Each Location

Factors Location 1
Proximity to AirPort 200
Proximity to Road Acccess 120
Proximity to Labour Source 30
Size of facility 40
Totals 390

Best Total Score


Best Location
Location 2
3
1
5
4

Location 2
120
30
50
80
280

390
Location 1
Objective Function Z= $130,370,000.00

East South Midwest


New York $211 $232 $240
Atlanta $232 $212 $230
Chicago $238 $230 $215
San Diego $299 $280 $270
Demand $110,000 180,000 $120,000

Demand Region
Supply Region
East South Midwest
NewYork 110000 0 90000
Atlanta 0 180000 20000
Chicago 0 0 0
San Diego 0 0 10000

Constarints
Supply Region Excess Capacity
NewYork 0
Atlanta 0 East
Chicago 0 Unmet Demand 0
San Diego 90000
West Annual Fixed Costs Capacity
$300 $6,000,000.00 200,000
$280 $5,500,000 200,000
$270 $6,600,000 200,000
$225 $6,100,000 200,000
100,000

ion
Plants
West
0 1
0 1
0 0
100000 1

South Midwest West


0 0 0
Objective Func Z= $142,670,000

East South Midwest West


New York $211 $232 $240 $300
Atlanta $232 $212 $230 $280
Chicago $238 $230 $215 $270
San Diego $299 $280 $270 $225
Demand $110,000 180,000 $120,000 100,000

Supply Region Demand Region

East South Midwest West


NewYork 110000 0 0 0
Atlanta 0 180000 0 0
Chicago 0 0 120000 100000
San Diego 0 0 0 0

Constraints
Supply Region Excess Capacity
NewYork 290000
Atlanta 220000 East South
Chicago 180000 Unmet Demand 0 0
San Diego 0
Annual Fixed Costs Capacity
$10,000,000 400,000
$9,200,000 400,000
$9,300,000 400,000
$10,200,000 400,000

Plants

1
1
1
0

Midwest West
0 0
Regional Demand and cools wipes
Northwest Southwest Upper Midwest LowerMidwest
Wipes 500 700 900 800
Onitment 50 90 120 65

Transportation cost per unit


NorthWest SouthWest Upper Midwest Lower Midwest
Chicago $6.32 $6.32 $3.68 $4.04
Princeton $6.60 $6.60 $5.76 $5.92
Atlanta $6.72 $6.48 $5.92 $4.08
Los Angeles $4.36 $3.68 $6.32 $6.32

Plants costs and capacities


Wipes Ointments
Fixed Cost Capacity Variable Cost perUnit Fixed Cost
Chicago $5,000,000 5,000,000 10 $1,500,000
Princeton $22,000,000.00 2,000,000 10 $1,500,000
Atlanta $22,000,000.00 2,000,000 10 $1,500,000
Los Angeles $22,000,000.00 2,000,000 10 $1,500,000
NorthEast SouthEast Total
1000 600 4500 W $4,532.08 $5,049,532.08 $6,562,529.48
120 70 515 O $2,697.40 $1,512,997.40
+
$5,045,000
$1,510,300

NorthEast SouthEast
$5.76 $5.96
$3.68 $4.08
$4.04 $3.64
$6.72 $6.60

Ointments
Capacity Variable Cost Per unit
1,000,000 20
1,000,000 21
1,000,000 22
1,000,000 23

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