Write the constraints for the 3 distribution centers
Due to increased sales, a company is considering building three new distribution centers (DCs) to serve four regional sales areas. The annual cost to operate DC 1 is $500 (in thousands of dollars). The cost to operate DC 2 is $600 (in thousands of dollars.). The cost to operate DC 3 is $525 (in thousands of dollars). Assume that the variable cost of operating at each location is the same, and therefore not a consideration in making the location decision.
The table below shows the cost ($ per item) for shipping from each DC to each region.
Region
DC A B C D
1 1 3 3 2
2 2 4 1 3
3 3 2 2 3
The demand for region A is 70,000 units; for region B, 100,000 units; for region C, 50,000 units; and for region D, 80,000 units. Assume that the minimum capacity for the distribution center will be 500,000 units.
Answer:
x1A + x1B +x1c - 500y1 ≤ 0
x2A + x2B +x2c - 500y2 ≤ 0
x3A + x3B +x3c - 500y3 ≤ 0
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