Data

• V1 = {Brossard, Granby, LaSalle, Mascouche, Montreal, Saint-Julie, Sherbrooke, Terrebonne, Valleyfield, Verdun}

• V2 = {Brossard, Granby, Saint-Julie, Sherbrooke, Valleyfield, Verdun}

• Xij, i ∈ V1, j ∈ V2, is a decision variable that represents the fraction of the annual demand of the market j satisfied by the plant i;

• yi, i∈V1, is a binary decision variable, whose value is equal to 1 if the Potential of plant i is open, 0 otherwise.

• Transport costs cij, i∈V1, j∈V2 see table 3.6, are calculated using

The equations:

Observing that trucks always travel with a full load on the trip one way and empty on the return trip.

• Since the distance between the plant in Granby and the sales district of Brossard is 76.1 km., The transport cost is 2 x 76.1 x 0.92 = 140.06 Canadian dollars for the transport of 150 hectoliters.

• Since the demand for Brossard district sales is 14,000 hectoliters per year, the annual transportation cost to meet the demand Total market of the Brossard plant in Granby is (14000/150) x 140.06 = 13072.32 Canadian dollars.