A company is considering opening warehouses in four cities: Ankara, Istanbul, Izmir, and Antalya. Each warehouse can ship 100 units per week, if it is opened. The weekly fixed cost of keeping each warehouse open is $500 for Ankara, $600 for Istanbul, $400 for Izmir, and $200 for Antalya. Region 1 of the country requires 80 units per week, region 2 requires 70 units per week, and region 3 requires 40 units per week. The costs (including production and shipping costs) of sending one unit from a warehouse to a region are shown in the following table. We want to meet weekly demands at minimum cost, subject to the preceding information. Then, we want to construct the constraints for the following restrictions: 1. At most two warehouses can be opened. 2. The Ankara and the Antalya warehouses cannot be opened at the same time. 3. Either the Antalya or the Istanbul warehouse must be opened, but not both. 4. If the Ankara warehouse is opened, then the Istanbul warehouse must be opened. Formulate an IP that can be used to minimize the weekly costs of meeting demand. Clearly define your decision variables and any parameter you introduce.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
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Chapter2: Introduction To Spreadsheet Modeling
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A company is considering opening warehouses in four cities: Ankara, Istanbul, Izmir, and Antalya. Each warehouse can ship 100 units per week, if it is opened. The weekly fixed cost of keeping each warehouse open is $500 for Ankara, $600 for Istanbul, $400 for Izmir, and $200 for Antalya. Region 1 of the country requires 80 units per week, region 2 requires 70
units per week, and region 3 requires 40 units per week. The costs (including production and shipping costs) of sending one unit from a warehouse to a region are shown in the following table.

We want to meet weekly demands at minimum cost, subject to the preceding information.
Then, we want to construct the constraints for the following restrictions:
1. At most two warehouses can be opened.
2. The Ankara and the Antalya warehouses cannot be opened at the same time.
3. Either the Antalya or the Istanbul warehouse must be opened, but not both.
4. If the Ankara warehouse is opened, then the Istanbul warehouse must be opened.
Formulate an IP that can be used to minimize the weekly costs of meeting demand. Clearly
define your decision variables and any parameter you introduce.

To ($)
Region 1 Region 2 Region 3
From
Ankara
20
40
50
Istanbul
Izmir
48
15
26
26
35
18
Antalya
24
50
35
Transcribed Image Text:To ($) Region 1 Region 2 Region 3 From Ankara 20 40 50 Istanbul Izmir 48 15 26 26 35 18 Antalya 24 50 35
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