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Formulate and implement a linear/integer programming model in excel to minimize the total cost for the network and to determine the number of plants to be opened and their locations.

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Formulate and implement a linear/integer programming model in excel to minimize the total cost for the network and to determine the number of plants to be opened and their locations.

I have already started on two different versions but can not get a linear model. I am stumped and have nowhere else to ask. Please look at the attatched word document (the problem statement and the excel spreadsheet). I really only need help with part 2.

The excel spread sheet has two sheets that are the same question that I tried to do two different ways.

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Solution Summary

This solution is comprised of a detailed explanation to formulate and implement a linear/integer programming model in excel to minimize the total cost for the network and to determine the number of plants to be opened and their locations.

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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  • "Thank you, this helped a lot. I was not sure how to plug in those numbers to a formula. This was a great help. Now I have to figure out how to explain cost of capital is used in net present value analysis, and how cost of capital is used in net present value analysis. This stuff gets confusing."
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