Examine the formulate an integer programming model

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Reference no: EM133985327

Assignment:

A company must decide the location of a new factory to serve demands from two cities. Assume an annual demand of 100 units each for City 1 and City 2. There are two potential factory sites. If Site 1 is chosen, it will cost the company $10,000. If Site 2 is chosen, it will cost the company $20,000. The capacity of the factory will be 200 units per year whether it is constructed in Site 1 or Site 2.

The unit transportation costs (including manufacturing cost) from Site 1 factory to City 1 and City 2 will be $100 and $150, respectively. The unit transportation costs (including manufacturing cost) from Site 2 factory to City 1 and City 2 are estimated at $10 and $15, respectively.

Examine the above information and formulate an integer programming model.

Reference no: EM133985327

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