At the core of this case is a distribution, or sourcing, problem that can be modeled and solved using linear programming (LP). There are also issues of whether to build (a) new plant(s)––and if so, what the capacity should be––and whether to expand or close one or more of the existing plants. These latter issues can be analyzed using a 0/1 LP facility-location model. Alternatively, because the number of options is limited, they can be analyzed using the straight LP model of the distribution problem as a tool to facilitate analysis.
CitationDownload as .RIS
University of Virginia Darden School Foundation
Copyright © 1989 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved.