Table 5-2 HighOptic
Inputs – Costs, Capacities, Demands (HighOptic)
Fixed Capa-
Supply City Atlanta Boston Chicago Denver Omaha Portland
Cost ($) city
Baltimore 1,675 400 685 1,630 1,160 2,800 7,650 18
Cheyenne 1,460 1,940 970 100 495 1,200 3,500 24
Salt Lake 1,925 2,400 1,425 500 950 800 5,000 27
Memphis 380 1,355 543 1,045 665 2,321 4,100 22
Wichita 922 1,646 700 508 311 1,797 2,200 31
Demand 10 814 6 7 11
Decision Variables
Plants
Supply City Atlanta Boston Chicago Denver Omaha Portland (1=open)
Baltimore 0 0 0 0 0 0
Cheyenne 0 0 0 6 7 0 1
Salt Lake 0 0 0 0 0 11 1
Memphis 0 0 0 0 0 0
Wichita 0 0 0 0 0 0
Constraints
Supply City Excess Capacity
Baltimore 18
Cheyenne 11
Salt Lake 16
Memphis 22
Wichita 31
Atlanta Boston Chicago Denver Omaha Portland
Unmet Demand 10 814 0 0 0
Objective Function
Cost = 21,365$
Demand City
Production and Transportation Cost per 1000 Units
Demand City – Production Allocation (1000 Units)
Optimal Demand Allocation for HighOptic (part of Table 5-2)
Table 5-2 TelecomOne
Inputs – Costs, Capacities, Demands (TelecomOne)
Fixed Capa-
Supply City Atlanta Boston Chicago Denver Omaha Portland
Cost ($) city
Baltimore 1,675 400 685 1,630 1,160 2,800 7,650 18
Cheyenne 1,460 1,940 970 100 495 1,200 3,500 24
Salt Lake 1,925 2,400 1,425 500 950 800 5,000 27
Memphis 380 1,355 543 1,045 665 2,321 4,100 22
Wichita 922 1,646 700 508 311 1,797 2,200 31
Demand 10 814 6 7 11
Decision Variables
Plants
Supply City Atlanta Boston Chicago Denver Omaha Portland (1=open)
Baltimore 0 8 2 0 0 0 1
Cheyenne 0 0 0 0 0 0 0
Salt Lake 0 0 0 0 0 0 0
Memphis 10 012 0 0 0 1
Wichita 0 0 0 0 0 0 1
Constraints
Supply City Excess Capacity
Baltimore 8
Cheyenne 24
Salt Lake 27
Memphis 0
Wichita 31
Atlanta Boston Chicago Denver Omaha Portland
Unmet Demand 000 67 11
Objective Function
Cost = 28,836$
Demand City
Production and Transportation Cost per 1000 Units
Demand City – Production Allocation (1000 Units)
Optimal Demand Allocation for TelecomOne (part of Table 5–2)
Merged Network with All Plants
Inputs – Costs, Capacities, Demands (for TelecomOptic)
Fixed
Supply City Atlanta Boston Chicago Denver Omaha Portland
Cost ($) Capacity
Baltimore 1,675 400 685 1,630 1,160 2,800 7,650 18
Cheyenne 1,460 1,940 970 100 495 1,200 3,500 24
Salt Lake 1,925 2,400 1,425 500 950 800 5,000 27
Memphis 380 1,355 543 1,045 665 2,321 4,100 22
Wichita 922 1,646 700 508 311 1,797 2,200 31
Demand 10 814 6 7 11
Decision Variables
Plants
Supply City Atlanta Boston Chicago Denver Omaha Portland (1=open)
Baltimore 0 8 2 0 0 0 1
Cheyenne 0 0 0 6 0 0 1
Salt Lake 0 0 0 0 0 11 1
Memphis 10 012 0 0 0 1
Wichita 0 0 0 0 7 0 1
Constraints
Supply City Excess Capacity
Baltimore 8 Total Available Capacity 122
Cheyenne 18
Salt Lake 16
Memphis 0
Wichita 24
Objective Function
Cost = 48,913$
Demand City
Production and Transportation Cost per 1000 Units
Demand City – Production Allocation (1000 Units)
Figure 5-12
Inputs – Costs, Capacities, Demands (for TelecomOptic)
Fixed
Supply City Atlanta Boston Chicago Denver Omaha Portland
Cost ($) Capacity
Baltimore 1,675 400 685 1,630 1,160 2,800 7,650 18
Cheyenne 1,460 1,940 970 100 495 1,200 3,500 24
Salt Lake 1,925 2,400 1,425 500 950 800 5,000 27
Memphis 380 1,355 543 1,045 665 2,321 4,100 22
Wichita 922 1,646 700 508 311 1,797 2,200 31
Demand 10 814 6 7 11
Decision Variables
Plants
Supply City Atlanta Boston Chicago Denver Omaha Portland (1=open)
Baltimore 0 8 2 0 0 0 1
Cheyenne 0 0 0 6 7 11 1
Salt Lake 0 0 0 0 0 0 0
Memphis 10 012 0 0 0 1
Wichita 0 0 0 0 0 0 0
Constraints
Supply City Excess Capacity
Baltimore 8
Cheyenne 0
Salt Lake 0
Memphis 0
Wichita 0
Atlanta Boston Chicago Denver Omaha Portland
Demand City
Production and Transportation Cost per 1000 Units
Demand City – Production Allocation (1000 Units)
Figure 5-12
Observe that the plants in Wichita and Salt lake are shut to further lower cost relative
to keeping all plants open.
Table 5-3 Single Sourcing
Inputs – Costs, Capacities, Demands (Table 11.4 for TelecomOptic)
Fixed
Supply City Atlanta Boston Chicago Denver Omaha Portland
Cost ($) Capacity
Baltimore 1,675 400 685 1,630 1,160 2,800 7,650 18
Cheyenne 1,460 1,940 970 100 495 1,200 3,500 24
Salt Lake 1,925 2,400 1,425 500 950 800 5,000 27
Memphis 380 1,355 543 1,045 665 2,321 4,100 22
Wichita 922 1,646 700 508 311 1,797 2,200 31
Demand 10 814 6 7 11
Decision Variables
Plants
Supply City Atlanta Boston Chicago Denver Omaha Portland (1=open)
Baltimore 0 0 0 0 0 0 0
Cheyenne 0 0 0 0 0 0 0
Resulting Production Allocation
Objective Function
Cost = 49,717$
Demand City
Production and Transportation Cost per 1000 Units
Demand City Supplied (1 indicates Cities Supplied)