[Solution] Three industrial sites are considered for locating manufacturing plants. The plants send their supplies to three customers. The supply at the
Question: Three industrial sites are considered for locating manufacturing plants. The plants send their supplies to three customers. The supply at the plants, the customer demands, and the unit transportation costs from the plants to the customers are given in the table below. For example, Plant 1 has a supply of 1,800 units, Customer 2 has demand for 1,700 units, and the transportation cost from Plant 1 to Customer 2 is $15 per unit.
In addition to the unit transportation costs, there are fixed costs of $12,000, $11,000, and $12,000 for using plants 1,2, and 3, respectively. Formulate an integer linear programming (ILP) model to determine how to satisfy demand at minimum total cost.
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