Solutions of Chapter-5

Solution of Ques 2
DRY ICE
SUPPLY
NEWYORK
ATLANTA
CHICAGO
SAN DIEGO
DEMAND
DECISION VARIABLES
SUPPLY
NEWYORK
ATLANTA
CHICAGO
SAN DIEGO
SOUTH
232
212
230
280
180000
SOUTH
0
180000
0
0
DEMAND
MIDWEST
EAST
WEST
FIXED CO
CAPACITY FIXED CO CAPACITY
240
211
300
6000000
200000 10000000
400000
230
232
280
5500000
200000 9200000
400000
215
238
270
5600000
200000 9300000
400000
270
299
225
6100000
200000 10200000
400000
120000
110000
100000
DEMAND
PLANT
PLANT
MIDWEST
EAST
WEST
(1=OPEN0 (1=OPEN)
85000
110000
5000
1
0
20000
0
0
1
0
0
0
0
0
0
15000
0
95000
1
0
CONSTRAINTS
SUPPLY
NEWYORK
ATLANTA
CHICAGO
SAN DIEGO
EXCESS Supply
0
0
0
90000
UNMET DEMAND
DEMAND
SOUTH
MIDWEST
EAST
WEST
-2.54E-07
2.62E-10
-7.45E-07 2.53E-07
OBJECTIVE FUNCTION
COST
130895028
SUPPLY
N.A
U.S
600
GERMANY
1300
JAPAN
2000
BRAZIL
1200
INDIA
2200
DEMAND
270
ALL THE THINGS ARE IN DOLLARS

DEMAND
S.A
EUROPE JAPAN
ASIA
CAPACITY PRODUCTION
1200
1300
2000
1700
185
10000
1400
600
1400
1300
475
7530
2100
1400
300
900
50
16740
800
1400
2100
2100
200
7306
2300
1300
1000
800
80
9200
190
200
120
100
DECISION VARIABLE
SUPPLY
N.A
S.A
U.S
185
GERMANY
75
JAPAN
0
BRAZIL
10
INDIA
0
0
0
0
190
0
DEMAND
PLANT
EUROPE JAPAN
ASIA
(1=OPEN)
0
0 5.72E-09
1
200
70
20
1
0
50
0
1
0
0 5.72E-09
1
0
0
80
1
CONSTRAINTS
SUPPLY
EXCESS CAPACITY
U.S
-9.5E-08
GERMANY
110
JAPAN
-9.5E-08
BRAZIL
0
INDIA
-9.3E-08
N.A
UNMET
DEMAND
6.68E-07
OBJECTIVE FUNCTION
COST
746276
S.A
6.68E-07
DEMAND
EUROPE JAPAN
0
ASIA
0
STURDYFON
DEMAND ALLOCATION
ALL COST ARE INCLUDED IN THE PRODUCTION MATRIX
production cost matrix

supply
EUROPE
N AMERICA
REST OF ASIA
DEMAND
DECISION VARIABLES
supply
EUROPE
N AMERICA
REST OF ASIA
CONSTRAINTS
SUPPLY
EUROPE
N AMERICA
S AMERICA
N,A
S,A
12.875
11.845
12.36
12
N,A
15.24
14.4
14.64
1
demand
EUROPE
S,A
0
12
0
demand
EUROPE NON EUROPE JAPAN
12.48
14.03
13.312
12.48
14.145
12.688
12.168
13.34
11.648
4
8
7
0
1
0
NON EUROPE JAPAN

8
0
0
0
0
7
NON EUROPE JAPAN

0
0
1
3
0
EXCESS
CAPACITY
9.616671855
4.383328139
0
N,A
demand
EUROPE
S,A
UNMET DEMAND
-5.96046E-09
OBJECTIVE EQUATION
COST
455.9960001
SLEEKFON
DEMAND ALLOCATION

supply
EUROPE
N AMERICA
S AMERICA
DEMAND
DECISION VARIABLES
supply
EUROPE
N AMERICA
S AMERICA
N,A
S,A
12.875
11.84
13.184
10
N,A
15.24
14.4
14.76
4
S,A
0
10
0
demand
12.48
14.03
13.312
12.48
14.145
12.688
13.52
15.295
13.728
20
3
2
demand
0
16
3
2
4
0
2
0
0
0
2
0
EXCESS
CAPACITY
CONSTRAINTS
SUPPLY
EUROPE
N AMERICA
S AMERICA
0
0
8
N,A
UNMET DEMAND
S,A
0
OBJECTIVE EQUATION
COST
demand
EUROPE
0
NON EUROPE JAPAN

0
539.786
AFTER MERGER - SLEEKFON &STURDYFON

supply
EUROPE
N AMERICA
S AMERICA
REST OF ASIA
DEMAND(SUM)
DECISION VARIABLES
supply
EUROPE
N AMERICA
S AMERICA
REST OF ASIA
CONSTRAINTS
supply
EUROPE
N AMERICA
S AMERICA
REST OF ASIA
N,A
S,A
12.875
11.84
13.184
12.36
22
N,A
S,A
1.70299E-07
21.99999949
0
1.70299E-07
EUROPE
0
15
5 9.000001
0
0
0
0
S,A
UNMET DEMAND
1.70299E-07
OBJECTIVE FUNCTION
COST
993.4219992
DEMAND
0
0
0
WHEN ALL THE DUTIES ARE REDUCED TO ZERO

STURDYFON
DEMAND
NON EUROPE JAPAN
11
0
0 3.999999
0 7.31E-07
0
5
EXCESS
CAPACITY
12.0000009
8.17856E-10
9.999999269
-3.75637E-09
N,A
D)
15.24
14.4
14.76
14.64
5
DEMAND
12.48
14.03
13.312
12.48
14.145
12.688
13.52
15.295
13.728
12.168
13.34
11.648
24
11
9
DEMAND ALLOCATION

supply
EUROPE
N AMERICA
REST OF ASIA
DEMAND
DECISION VARIABLES
supply
EUROPE
N AMERICA
REST OF ASIA
CONSTRAINTS
SUPPLY
EUROPE
N AMERICA
S AMERICA
N,A
S,A
12.5
11.5
12
12
N,A
12.7
12
12.2
1
demand
EUROPE
S,A
0
12
0
demand
12
12.2
12.8
12
12.3
12.2
11.7
11.6
11.2
4
8
7
0
1
0
NON EUROPE JAPAN

2
8
2
0
0
0
0
0
7
NON EUROPE JAPAN

0
0
EXCESS
CAPACITY
9.450003882
4.549995829
-5.78824E-07
N,A
UNMET DEMAND
S,A
0
OBJECTIVE EQUATION
COST
demand
EUROPE
0
419.4000102
SLEEKFON
DEMAND ALLOCATION

supply
EUROPE
N AMERICA
S AMERICA
DEMAND
DECISION VARIABLES
supply
EUROPE
N AMERICA
S AMERICA
N,A
S,A
12.5
11.5
12.8
10
N,A
12.7
12
12.3
4
demand
EUROPE
S,A
10
0
0
demand
12
12.2
12.8
12
12.3
12.2
13
13.3
13.2
20
3
2
4
0
0
NON EUROPE JAPAN

2
0
9
2
9
1
2
0
0
CONSTRAINTS
SUPPLY
EUROPE
N AMERICA
S AMERICA
EXCESS
CAPACITY
-4.92919E-09
8.000000005
0
N,A
S,A
UNMET DEMAND
OBJECTIVE EQUATION
COST
E)
demand
EUROPE
0
NON EUROPE JAPAN

0
0
526.4
NO DUTIES ARE CHARGED THEN MERGED NETWORK CONFIGURATION

STURDY FON &SLEEKFON
DEMAND ALLOCATION

supply
EUROPE
N AMERICA
S AMERICA
REST OF ASIA
DEMAND
DECISION VARIABLES
supply
EUROPE
N AMERICA
S AMERICA
REST OF ASIA
CONSTRAINTS
SUPPLY
EUROPE
N AMERICA
S AMERICA
REST OF ASIA
N,A
S,A
12.5
11.5
12.8
12
22
N,A
S,A
0
22
0
0
OBJECTIVE EQUATION
COST
0
5
0
0
demand
15
11
9
0
0
0
0
0
0
4
0
5
EXCESS
CAPACITY
12
1.77872E-09
10
-3.40918E-09
N,A
UNMET DEMAND
12.7
12
12.3
12.2
5
demand
12
12.2
12.8
12
12.3
12.2
13
13.3
13.2
11.7
11.6
11.2
24
11
9
demand
EUROPE
S,A
0
919.8
NON EUROPE JAPAN

0
UCTION MATRIX
CAPACITY
REST OF ASIA AFRICA
15.5
15.5
15.25
15.875
13.42
14.75
3
1
20
20
10
PLANT
REST OF ASIA AFRICA
(1=OPEN)
0
1
1
0
0
1
3
0
1
REST OF ASIA
AFRICA
0
UCTION MATRIX
CAPACITY
REST OF ASIA AFRICA
15.5
15.5
15.25
15.875
16.47
16.875
2
1
20
20
10
PLANT
REST OF ASIA AFRICA
(1=OPEN)
0
1
1
2
0
1
0
0
1
REST OF ASIA
AFRICA
0
REST OF ASIA AFRICA

CAPACITY
15.5
15.5
40
15.25
15.875
40
16.47
16.875
10
13.42
14.75
10
5
2
REST OF ASIA
AFRICA
0
0
0
5
REST OF ASIA
2
0
0
0
AFRICA
0
CAPACITY
1
1
1
1
UCTION MATRIX
CAPACITY
REST OF ASIA AFRICA
12.7
12.4
12.5
12.7
11
11.8
3
1
REST OF ASIA
AFRICA
0
0
3
REST OF ASIA
20
20
10
PLANT
(1=OPEN)
1
1
0
1
0
1
AFRICA
0 -8.7E-07
UCTION MATRIX
CAPACITY
REST OF ASIA AFRICA
12.7
12.4
12.5
12.7
13.5
13.5
2
1
20
20
10
PLANT
REST OF ASIA AFRICA
(1=OPEN)
2
0
1
0
1
1
0
0
1
REST OF ASIA
AFRICA
0
UCTION MATRIX
REST OF ASIA AFRICA

CAPACITY
12.7
12.4
40
12.5
12.7
40
13.5
13.5
10
11
11.8
10
5
2
REST OF ASIA
AFRICA
0
0
0
5
REST OF ASIA
2
0
0
0
AFRICA
0
PLANT
(1=OPEN)
1
1
1
1
AFTER MERGER - SLEEKFON &STURDYFON

DEMAND
supply
N,A
S,A
REST OF ASIA
EUROPE
12.875
15.24
12.48
14.03
13.312
15.5
N AMERICA
11.84
14.4
12.48
14.145
12.688
15.25
S AMERICA
13.184
14.76
13.52
15.295
13.728
16.47
REST OF ASIA
12.36
14.64
12.168
13.34
11.648
13.42
DEMAND(SUM)
22
6
24
13.2
9
15
DECISION VARIABLES
supply
N,A
EUROPE
N AMERICA
S AMERICA
REST OF ASIA
CONSTRAINTS
supply
EUROPE
N AMERICA
S AMERICA
REST OF ASIA
S,A
0
0
22 4.400001
0 1.599999
0
0
EUROPE
24
0
0
0
DEMAND
NON EUROPE JAPAN
13.2
0
0
0
0
9
0
0
REST OF ASIA
0.400000191
4.599999237
0
10.00000057
EXCESS
CAPACITY
-2E-07
1.44E-08
8.400001
-5.7E-07
N,A
S,A
UNMET DEMAND
3.5E-10
DEMAND
REST OF ASIA
0 -8.9E-09
0 -3.9E-08
0
OBJECTIVE FUNCTION
COST
1194.114
supply
EUROPE
N AMERICA
S AMERICA
REST OF ASIA
DEMAND(SUM)
N,A
DECISION VARIABLES
supply
N,A
EUROPE
S,A
12.5
11.5
12.8
12
22
12.7
12
12.3
12.2
6

REST OF ASIA
12
12.2
12.8
12.7
12
12.3
12.2
12.5
13
13.3
13.2
13.5
11.7
11.6
11.2
11
24
13.2
9
15
DEMAND
S,A
0 2.38E-08
24
13.2
REST OF ASIA
0.4
N AMERICA
S AMERICA
REST OF ASIA
CONSTRAINTS
supply
EUROPE
N AMERICA
S AMERICA
REST OF ASIA
UNMET DEMAND
22
0
0
4.4
1.6
0
0
0
0
0
0
0
9
0
0
4.600000023
0
10
EXCESS
CAPACITY
-1.9E-08
-2.4E-08
8.4
0
N,A
S,A
2.86E-07
OBJECTIVE FUNCTION
COST
1086.66
DEMAND
0 4.37E-09
0
REST OF ASIA
0 -2.31128E-08
AFRICA
CAPACITY
15.5
40
15.875
40
16.875
10
14.75
10
2.4
AFRICA
2.4
0
0
0
CAPACITY
1
1
1
1
AFRICA
0
AFRICA
CAPACITY
12.4
40
12.7
40
13.5
10
11.8
10
2.4
AFRICA
2.4
CAPACITY
1
0
0
0
AFRICA
0
1
1
1
SOLUTION 6
DEMAND
COMPONUND GROWTH
1
2
3
4
5
20%
NORTH
WEST
SOUTH
EAST
100000
150000
150000
50000
TOTAL
120000
180000
180000
60000
540000
144000
216000
216000
72000
648000
172800
259200
259200
86400
777600
207360
311040
311040
103680
933120
248832
373248
373248
124416
1119744
FOR FIRST YEAR

DEMAND
SUPPLY
NORTH
EAST
WEST
SOUTH
FIXED COST CAPACITY
CHENNAI
20
19
17
15 4000000000
300000
MUMBAI
17
20
15
17 4000000000
300000
DEMAND
120000
180000
180000
60000
DECISION VARIABLES
DEMAND
PLANT
SUPPLY
NORTH
EAST
WEST
SOUTH
(1=OPEN)
CHENNAI
0
180000
0
60000
1
MUMBAI
120000
0
180000
0
1
CONSTRAINTS
SUPPLY
EXCESS CAPACITY
CHENNAI
60000
MUMBAI
0
UNMET
NORTH
DEMAND
EAST
0
OBJECTIVE FUNCTION
COST
8009060000
DEMAND
WEST
SOUTH
0
0
0
Kentuchy
Pennsyivania
Demand
Decision variables
Supply Region
Northeast
Southeast Midwest South
West
Annual F.C.
185
180
175
175
200
150
170
190
180
200
220
200
700000
400000
400000
300000
600000
Kentuchy
Pennsyivania
Demand Region
Northeast
West
Plants
394999.9 120000.4 120000.4 70000.4 294999.9
1.000001
305000.1 279999.6 279999.6 229999.6 305000.1 0.93333267
Constraints
Supply region
Kentuchy
Pennsyivania
Excess capacity
0
0
Northeast
Unmet demand
Objective Function
Cost
Kentuchy
Pennsyivania
N. Carolina
California
Demand
Decision variables
Supply Region
Kentuchy
Pennsyivania
N. Carolina

0
0
0
West
0
455475321
Northeast
West
Annual F.C.
185
180
175
175
200
150
170
190
180
200
220
200
180
180
185
185
215
150
220
220
195
195
175
150
1050000
600000
600000
450000
900000
Demand Region
Northeast
271590.871 180303.07 171212.1 145833.4
271590.951 143939.38 146969.7 97348.44
265530.344 150000.03 143939.4 106439.4
West
Plants
231060.6
1
212878.8 0.58181815
215909.1 0.58787885
California
Constraints
Supply region
Kentuchy
Pennsyivania
N. Carolina
California
241287.834 125757.52 137878.8 100378.8 240151.6 0.56363634
Excess capacity
0
0
0
0
Northeast
Unmet demand
Objective Function
Cost

0
0
0
687443612
West
0
Supply
1000000
1500000
Supply
1000000
1500000
1500000
1500000

Solutions of Chapter-5

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Solutions of Chapter-5

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Solution of Ques 2

ALL THE THINGS ARE IN DOLLARS

production cost matrix

NON EUROPE JAPAN

NON EUROPE JAPAN

production cost matrix

NON EUROPE JAPAN

AFTER MERGER - SLEEKFON &STURDYFON

WHEN ALL THE DUTIES ARE REDUCED TO ZERO

ALL COST ARE INCLUDED IN THE PRODUCTION MATRIX

NON EUROPE JAPAN

NON EUROPE JAPAN

production cost matrix

NON EUROPE JAPAN

NON EUROPE JAPAN

NO DUTIES ARE CHARGED THEN MERGED NETWORK CONFIGURATION

production cost matrix

NON EUROPE JAPAN

REST OF ASIA AFRICA

REST OF ASIA AFRICA

AFTER MERGER - SLEEKFON &STURDYFON

EUROPE NON EUROPE JAPAN

FOR FIRST YEAR

Southeast Midwest South

241287.834 125757.52 137878.8 100378.8 240151.6 0.56363634

Southeast Midwest South

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