[SOLVED] graph network Project 1: Modeling supply chain

Project 1: Modeling supply chain
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Project: Modeling
The company HighTech Limited operates three production facilities (F) and seven distribution centers (DC) to serve 20 customers. This is illustrated in figure .
F3
16
DC7
15
20
F1
5
DC4 12
7 11DC6
3 19
9
DC3
2
1
6
14
DC5
13
DC1
10
18
17
48 DC2
F2
Figure 1: Geographical distribution of the three production facilities (F), seven distribution centers (DC) and twenty customers.
Each facility and DC have a given capacity (production and through-flow) and each customer has a demand. There is a given unit cost to transport based on distances. Facilities can trans- port only to DCs. Data is given in a separate Excel-sheet (see figure 2). In this Excel-sheet all distances are given. We should note that the unit transportation cost can be assumed pro- portional between facilities and DCs whereas between DCs and customers it is 50% higher i.e. 1,5*distance. The management believe that the current operations can be improved. The as- signment is to develop an optimization model for the problem such that the questions below can be answered.
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Questions
The model should be implemented in both Excel and AMPL.
(i) Provide a solution to the problem where all facilities and seven DCs are used. The solution should include objective values for the four components
the fixed cost of facilities
fixed cost of DCs
transportation cost between facilities and DCs transportation cost between DCs and customers
(ii) Find a solution where the number of DCs can be reduced from todays seven. The solution should include which DCs to operate and the four components mentioned in (i).
(iii) The management is considering to close down one of the facilities. Find a solution where facilities can be closed and the number of DCs can be reduced. The solution should include which facilities to operate, which DCs to operate and the four components men- tioned in (i).
(iv) Discuss the design of the network from the solution in question (iii) as compared to the design in question (i). What are the disadvantages and advantages with the two?
The model developed and the findings should be written in a short report outlining the results. Excel sheets and files used in AMPL should be included.
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Figure 2: Screen shot from Excel input data.
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