Linear Programming
Deterministic Models in OR (540:311) Case Study Assignment 16: Construction Materials Purchase A construction company needs to buy 900 units of a specific building material and has received quotes from three suppliers. Each supplier offers different prices based on order quantity. To diversify their supplier base, the maximum percentage of materials from suppliers 1 is 40%, and from supplier 2, 35%; supplier 3 is 50%. Each supplier offers decreasing prices for increased lot size, in the form of incremental discounts. Assume the cost function has three break points for each supplier is: COST s1 s2 s3 1 8.5 9.1 10.0 2 8.2 8.7 8.9 And that the break points occur at the following levels: BR 0 1 s1 0 200 s2 0 50 s3 0 150 3 6.9 8.0 7.6 2 300 250 250 Determine how we should buy 900 items in total to minimize total cost. 3 500 350 400
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