SOCAR is a rental car company based in Malaysia. Currently, the Johor Bahru and Penang branches have 19 and 23 surplus cars, respectively, while the Malacca, Port Dickson, Kuala Lumpur, and Putrajaya branches each need 12 cars. Table 1 summarises the costs of moving the surplus cars from the Johor Bahru and Penang branches to the other locations
SOCAR wants to ensure that each of the Malacca, Port Dickson, Kuala Lumpur, and Putrajaya branches will receive at least 7 cars and that all the surplus cars at Johor Bahru and Penang are sent to these demanding branches.
UBike is a bicycle manufacturer based in Japan. Haruki, the supply chain manager at UBike is designing the manufacturing network and has selected four potential sites—Tokyo, Sapporo, Fukuoka, and Sendai. The below table shows the annual fixed costs at the four locations as well as the cost of producing and shipping a bicycle to each of the four markets. Note that plants could have a capacity of either 250,000 or 500,000 units and that each open plant should have at least 60% capacity utilization.
Formulate an integer linear programming (ILP) model for this problem.
Develop a spreadsheet model and solve the problem of finding the optimal location and sizing for UBike factories.
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