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Operations Research Models and Methods
 
Problems Section
Network Flow Programming Models
 - Warehouse Location

There are four possible sites for warehouses. The monthly equivalent cost of construction at each site is $1000 per month plus a variable cost of $5 per month per unit shipped. There are five customers with demands (per month) and transportation costs ($ per unit) as shown in the table.

 
Demanders

Warehouse

1

2

3

4

5

1

8

12

6

15

9

2

11

17

3

4

7

3

9

17

10

2

6

4

15

20

5

12

3

Demand

20

30

40

50

20

Assume warehouse capacities are limited to shipments of 70 units per month. Solve the problem with a network model with some integer arcs.

 


  
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