Highlights
Questions
1. A manufacturer plans to construct a few factories to produce a product P in a region. Three potential factories denoted as F1, F2, and F3, can be constructed. The manufacturer can choose to construct 0, 1, 2, or 3 factories. The annualized construction cost and capacity of the three potential factories are shown in Table 1.1. The production cost of P is $130/ton and the selling price of P is $200/ton, and the production cost and selling price of P will not be influenced by the production and selling locations.
| Factory | Annualized construction cost (thousand $/year) | Capacity (thousand tons/year) |
| F1 | 210 | 37 |
| F2 | 410 | 23 |
| F3 | 500 | 60 |
2. A food company is making plans for temporary factory construction over the next 3 years. There are 3 potential locations for constructing new temporary-factories, denoted as F1, F2, and F3. The company may construct 0, 1, 2, or 3 temporary factories in the next 3 years, and at most one temporary factory can be constructed at each location.
| City | Potential demand (thousand tons/year) | Annualized cost of establishing a sales branch (thousand $/year) |
| C1 | 20 | 60 |
| C2 | 35 | 85 |
| C3 | 25 | 56 |
| C4 | 30 | 72 |
3. A company plans to construct 1, 2, 3, or 4 new factories at four potential locations, denoted as L1, L2, L3, and L4. At most one factory can be constructed at each location. Once a location is chosen to construct the factory, the capacity of the factory should belong to the range [100, 200] tons. Otherwise, no factory will be built at this location and the capacity is 0.
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