! Lock box location model;
! Given cash volumes in each customer region,
fixed cost per month of a processing facility at
each candidate facility location,
delivery time between customer regions and facility locations,
and cost of capital applied to delivery times,
decide which facility should serve each customer;
! Keywords: lockbox location, facility location, location,
uncapacitated location;
SETS:
LBLOC: CPM, Y;
CUST: CASH_VOL;
CXL( CUST, LBLOC): DLAY, X;
ENDSETS DATA:
CUST= ! The customer regions;
Seattle Los_Angeles Houston Philadelphia Miami;
CASH_VOL= ! Monthly cash volume in $1000;
5000 5000 5000 5000 5000;
LBLOC=! The possible lock box locations;
New_York Atlanta Cincinnati Denver Seattle Home_Office;
CPM= ! Fixed cost/month of a lockbox at this location;
1300 975 1000 1100 2000 0;
DAILY_CC= .00027; ! Daily cost of capital;
! Average mail delay between locations in days;
DLAY=
4 4 3 1 2 2 !Seattle;
4 3 3 1 2 3 !Los Angeles;
3 3 3 2 3 3 !Houston;
1 2 2 3 3 3 !Philadelphia;
3 1 2 4 3 4;!Miami;
ENDDATA
! Minimize monthly fixed + delay costs;
MIN = FIXED_COSTS + DELAY_COSTS;
FIXED_COSTS = @SUM( LBLOC(j): CPM(j)*Y(j));
DELAY_COSTS = @SUM( CXL(i,j): DLAY(i,j)*1000*CASH_VOL(i)*DAILY_CC*X(i,j));
! Each customer region i must be assigned to some lockbox j;
@FOR(CUST(i):
@SUM( LBLOC(j): X(i,j)) = 1;
);
! If customer i assigned to location j, then j must be open;
@FOR( CXL(i,j):
X(i,j) <= Y(j);
);
! Location j is either open or closed, 1 or 0;
@FOR( LBLOC(j): @BIN(Y(j)));
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