Demand RegionSupply Prodn & Trans costs / mill units Fixed CostRegion N. America S. America Europe Asia Africa ('000 $)

N. America 81 92 101 130 115 6000S. America 117 77 108 98 100 4500

Europe 102 105 95 119 111 6500Asia 115 125 90 59 74 4100

Africa 142 100 103 105 71 4000

Low HighCapacity Fixed Cost Capacity

(mill units) ('000 $) (mill units)10 9000 2010 6750 2010 9750 2010 6150 2010 6000 20

Demand RegionProdn & Trans costs / mill units

Supply Region N. America S. America Europe Asia AfricaN. America 81 92 101 130 115S. America 117 77 108 98 100

Europe 102 105 95 119 111Asia 115 125 90 59 74

Africa 142 100 103 105 71Demand (mill units) 12 8 14 16 7

Decision variables x (i, j)Region N. America S. America Europe Asia Africa

N. America 0 0 0 0 0S. America 12 8 0 0 0

Europe 0 0 0 0 0Asia 0 0 4 16 0

Africa 0 0 10 0 7

ConstraintsSupply Region Excess Capacity

N. America 0S. America 0

Europe 0Asia 0

Africa 3

Unmet Demand 0 0 0 0 0

Objective functionCost 23751

Low HighFixed Cost Capacity Fixed Cost Capacity ('000 $) (mill units) ('000 $) (mill units)

6000 10 9000 204500 10 6750 206500 10 9750 204100 10 6150 204000 10 6000 20

y (i)Plant (1=open) Plant (1=open)

0 00 10 00 10 1

Transportation cost Quantity Coordinates$/Ton mile F(n) Tons D(n) x(n) y(n)

Component Supply SourcesBuffalo 0.90 500 700 1200Memphis 0.95 300 250 600St. Louis 0.85 700 225 825

MarketsAtlanta 1.50 225 600 500Boston 1.50 150 1050 1200Jacksonville 1.50 250 800 300Philadelphia 1.50 175 925 975New York 1.50 300 1000 1080

Factory LocationX 681.30Y 882.00

Cost ($) 1265235

d(n)

319515460

391487594261375

TelecomOneDemand City Monthly Monthly

Prodn & Trans cost/1000 units ('000 $) Capacity Fixed CostSupply City Atlanta Boston Chicago ('000 units) ('000 $)Baltimore 1675 400 685 18 7650Memphis 380 1355 543 22 4100Wichita 922 1646 700 31 2200

Monthly Demand 10 8 14('000 units)

Variables Atlanta Boston ChicagoBaltimore 0 8 2Memphis 10 0 12Wichita 0 0 0

Constraints Excess CapacityBaltimore 8Memphis 0Wichita 31

Unmet Demand 0 0 0

Cost 14886

HighOpticDemand City Monthly

Prodn & Trans cost/1000 units ('000 $) CapacitySupply City Denver Omaha Portland ('000 units)Cheyenne 100 495 1200 24Salt Lake City 500 950 800 27

Monthly Demand 6 7 11('000 units)

Variables Denver Omaha PortlandCheyenne 6 7 0Salt Lake City 0 0 11.000001

Constraints Excess CapacityCheyenne 11Salt Lake City 15.999999

Unmet Demand 0 0 -1E-06

Cost 12865.0008

MonthlyFixed Cost

('000 $)35005000

TO & HO

Demand CityProdn & Trans cost/1000 units ('000 $)

Supply City Atlanta Boston Chicago Denver Omaha PortlandBaltimore 1675 400 685 1630 1160 2800Cheyenne 1460 1940 970 100 495 1200Salt Lake City 1925 2400 1425 500 950 800Memphis 380 1355 543 1045 665 2321Wichita 922 1646 700 508 311 1797

Monthly Demand 10 8 14 6 7 11('000 units)

Monthly MonthlyCapacity Fixed Cost

('000 units) ('000 $)18 765024 350027 500022 410031 2200

TO & HO

Demand CityProdn & Trans cost/1000 units ('000 $)

Supply City Atlanta Boston Chicago Denver Omaha PortlandBaltimore 1675 400 685 1630 1160 2800Cheyenne 1460 1940 970 100 495 1200Salt Lake City 1925 2400 1425 500 950 800Memphis 380 1355 543 1045 665 2321Wichita 922 1646 700 508 311 1797

Monthly Demand 10 8 14 6 7 11('000 units)

variable partDecision variables Atlanta Boston Chicago Denver Omaha Portland

Baltimore 0 8 2 0 0 0Cheyenne 0 0 0 6 7 11Salt Lake City 0 0 0 0 0 0Memphis 10 0 12 0 0 0Wichita 0 0 0 0 0 0

Constraints Excess CapacityBaltimore 8Cheyenne 0Salt Lake City 0Memphis 0Wichita 0

Unmet Demand 0 0 -4.321E-08 0 0 0

Cost 47401

Monthly MonthlyCapacity Fixed Cost

('000 units) ('000 $)18 765024 350027 500022 410031 2200

Fixed cost

Plant (1=open)11010