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Manufacturing and Logistics Optimization Model

The document outlines a logistics optimization problem involving two manufacturing plants, two warehouses, and three markets, detailing transportation costs, storage costs, and supply and demand constraints. It includes an objective function to minimize costs associated with shipping and storage, along with restrictions on supply, capacity, and demand. The LINGO code provided is designed to solve this optimization problem.

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0% found this document useful (0 votes)
7 views3 pages

Manufacturing and Logistics Optimization Model

The document outlines a logistics optimization problem involving two manufacturing plants, two warehouses, and three markets, detailing transportation costs, storage costs, and supply and demand constraints. It includes an objective function to minimize costs associated with shipping and storage, along with restrictions on supply, capacity, and demand. The LINGO code provided is designed to solve this optimization problem.

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© All Rights Reserved
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A company has two manufacturing plants located in different areas.

It can
sell their products in three different markets located in different places,
middle of their warehouses. The demand in each market is also indicated.
in the picture.
The capacity data at each plant, as well as the transportation cost to the
Warehouses are given in the following table, and the capacity data for each is also indicated.
warehouse
TOWARDS THE WAREHOUSE SUPPLY
FROM THE PLANT ($/UNITS) DIARY
1 2 (UNITS)
A 5 6 5500
B 7 5 5500
STORAGE COST
15 15
($/UNITS)
STORAGE CAPACITY
3000 3500
(UNITS/DAY)

TOWARDS THE MARKET


FROM THE WAREHOUSE TO THE MARKET ($/UNITS)
1 2 3
1 5 2 4
2 4 3 3
DEMANDA DIARIA (UNIDADES) 1000 1700 1300

i= 1, 2 (PLANT)
j= 1, 2 (WAREHOUSE)
k= 1, 2, 3 (MARKET)
Units to be sent from the plant to the warehouse

Units to be sent from the warehouse to the market

Supply 5500 5500


Capacity = 3000 3500
Demand = 1000 1700 1300
1 = 5 6 7 5 = [shipping cost of one unit from plant i to warehouse j]
2 = 15 15 = [storage cost of a unit in warehouse j]
3 Shipping cost per unit from warehouse j to market k
Objective function:
2 2 2 2 2 3
MinZ= ∑ ∑
i=1j=1
X∗C
ij 1+
ij ∑ ∑
I=1j=1
X∗C2+
ij j ∑ ∑ Y∗C3
j=1k=1
ij jk

Restricted by:
2


j=1
Xij ≤ Supply ; i ∀ i


I=1
Xij ≤ Capacity; j ∀ j


j=1
Y jk ≥ Demand;
k ∀k

2 3


I=1
X= ∑
ij Y;
k=1
∀j jk

X ij ,Yjk≥ 0 ; f o r a l l i j , f o r a l l j k

LINGO:
SETS:
PLANT/1,2/: SUPPLY;
STORAGE/1,2/: CAPACITY,C2 ;
MARKET/1,2,3/: DEMAND;
PXA(PLANT,WAREHOUSE):X,C1;
AXM(WAREHOUSE, MARKET):Y, C3;
ENDSETS
DATA:
SUMINISTRO=5500 5500;
CAPACIDAD= 3000 3500;
DEMANDA= 1000 1700 1300;
C1= 5 6 7 5;
C2= 15 15;
C3= 5 2 4 4 3 3;
ENDDATA
MIN=@SUM(PXA(I,J): X(I,J)*C1(I,J)+X(I,J)*C2(J))
+@SUM(AXM(J,K):Y(J,K)*C3(J,K));
@FOR(PLANT(I):@SUM(STORAGE(J):X(I,J))<= SUPPLY(I));
@FOR(STORAGE(J):@SUM(PLANT(I):X(I,J))<= CAPACITY(J));
@FOR(MARKET(K):@SUM(STORE(J): Y(J,K))>= DEMAND(K));
@FOR(ALMACEN(J):@SUM(PLANTA(I):X(I,J))=@SUM(MERCADO(K):Y(J,K)));
END
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