Facility Location

Abstract

GTC has undertaken a major project to lay cables in a large region. The cables are supplied in spools. These spools are stored in adequate numbers in warehouses and transported to six cable laying sites. There are five sites for warehouses, labeled A, B, C, D, and E, at which GTC can rent warehouse space. Each of these sites have capacity sufficient to store all the spools required for the full duration of the project. The rents at different warehouse sites however, depend on the location of the site, and are given in Table 5.1. The rents quoted in Table 5.1 are the rents for a sufficiently large warehouse at that site for the full duration of the project. The cable laying sites are labeled I, II, III, IV, V, and VI. The distances in kilometers to the cable laying sites from the potential warehouse sites along the existing road network are also known and are shown in Table 5.2. The transportation costs can be assumed to be “100 per kilometer for the full duration of the project. The demands for cables at the six sites I through VI are 700, 2300, 500, 3000, 2000, and 1500 spools, respectively.