Institute of Management Technology, NagpurBATCH PGDM (2014-16)

Term-IIASSIGNMENT Section E

Subject – Management Science Models ______________________________________________________________________

Logistics ModelsCapacitated Plant Location Model: CAPLOCBackground

The capacitated plant location model is a generalization of the transportation model. Capacitated plant location problem allows greater latitude of decision making in that the points of origin (plant locations) are variable. Manufacturers and wholesale businesses are likely to encounter problems of this sort in matching existing customer demand to product availability and minimizing transportation costs.

The Problem in Words

Your firm has a choice of five locations to operate a manufacturing facility and seven customers exist with a known demand for your product. Each potential plant location has an associated monthly operating cost, and shipping routes to the demand cities have varying costs. In addition, each potential plant will have a shipping capacity that must not be exceeded. You need to determine what plant(s) to open and how much of a product to send from each open plant to each customer to minimize total shipping costs and fixed plant operating costs.

Find the optimal solution.

Note – Answer/data found same shall be considered as copied & will be graded Zero. Submission date for the above said assignment is – Friday, 12.12.2014, latest by 5.00 pm in APO office.

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