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IIM Raipur
06 October 2017
Minimum:
LCD42 200K
LCD42
Maximum
LCD42 600K Shanghai
LCD42 (DC)
LCD42
Budget: CN 3 billion
Transportation mode Requirement:
LCD32/42 ODM1 LCD42: 920K
LCD32: 530K
LCD32/42 ODM2
ODM (Suppliers)
LCD42 ODM3
LCD42 ODM4
LCD42 ODM3
LCD42 ODM4
1000000
800000
600000 300K
330K
400000
200000
0
Air Express Road Road LTL Road-Network Rail Water
Sensitivity
.
.
Sensitivity of $F$50 to Total budget
8000000
7000000
CO2 emission
Maximize obj 1
Minimize obj 2
x
Trade-off curve
b
Efficient frontier
x
Gopal Kumar (IIM Raipur) SCMA 06 October 2017 8/20
Pareto Optimality
Trade-Off Curves
Objectives:
Maximize profit
Minimize pollution
20000
Profit
15000
10000
5000
PolluB ($D$21)
.
Model 3: Allocating demand to production facilities
TelecomOne HighOptic
.
Model 3: Allocating demand to production facilities
Demand City
Production and Transportation Cost per 1000 Units Fixed Capa-
Supply City Atlanta Boston Chicago Denver Omaha Portland Cost ($) 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 8 14 6 7 11
.
Model 3: Allocating demand to production facilities
s.t.
Which supply sources are n
used by a plant? x
i 1
ij
D j , j 1,..., m
xij = Quantity shipped from m
x ij
0
Decision Variables
Demand City - Production Allocation (1000 Units) 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
Gopal Kumar (IIM Raipur) SCMA 06 October 2017 17/20
Capacitated Plant Location Model
Phase IV
.
TelecomOne
Decision Variables
Demand City - Production Allocation (1000 Units) 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 0 12 0 0 0 1
Wichita 0 0 0 0 0 0 1
Merger!!
First decide which factories
Thanks!