Location Location Location Location NUMBER OF TRIPS DISTANCE BETWEEN PER DAY BETWEEN LOCATIONS (yards) DEPARTMENTS To A B C D 2 3 From From To 1 40 80 70 10 20 80 40 50 2 40 90 60 3 55 4

Smart Corporation produces and sells laptops. It has four factories and four shops located in different cities. The management of Smart Corporation has just bought a new machine that can improve its productivity. After using the new machine, Smart Corporation's production has increased by 500 units. Therefore, the management has decided to open a new shop and two cities are under their consideration. The two cities under consideration are City E and City F. The shipping cost per unit (RM), factory supplies, and shop demands are as follows Factory Shop Supply A I || IV Demand B 30 40 35 40 с 30 35 50 30 600 700 D E F 45 55 50 45 40 50 35 60 30 45 40 45 55 45 50 55 400 600 500 500 700 800 700 600 1. Determ the best choice of city to open the new shop. Why? 2. Due to the shipping limitation, no unit shall be shipped from I to City B. What would happen to the answer in (a)?

Operation management

Facility Location. A paper products manufacturer has enough capital to build and manage some additional manufacturing plants in the United States in order to meet increased demand in three cities: New York City, NY; Los Angeles, CA; and Topeka, KS. The company is considering building in Denver, CO; Seattle, WA; and St. Louis, MO. Max Operating Capacity 400 tons/day 700 tons/day Denver Seattle $10/ton $17/tor $5/ton $11/ton.... $18/ton.... $28/ton Los Angeles Topeka New York City Figure 1: Graphical representation of the given data = • The cost fi of building plants in these cities is fi $10,000,000 in Seattle. Unmet Demand 300 tons/day 100 tons/day 500 tons/day • Due to geographic constraints, plants in Denver and Seattle would have a maximum operating capacity kį of 400 tons/day and 700 tons/day respectively. $5,000,000 in Denver and f2 = • The cost cij per ton of transporting paper from city i to city j is outlined in Figure 1. • The unmet demand d, for Los Angeles, Topeka, and New…