This mini-project shows how to turn a plain business question—
“Which plant should make which products, and where should those truckloads go, so that I meet demand at the lowest possible cost?”
—into a Mixed-Integer Linear Program (MILP) that a solver can handle in seconds.
- Two plants build three SKUs.
- Production happens in whole batches (no fractions).
- Shipments move in whole truckloads (all-or-nothing).
- Each plant has limited capacity and its own unit cost.
- Every truck costs a fixed charter fee plus a distance-based variable cost.
- Warehouses have fixed demand that must be satisfied.
Your job: decide how many batches to make at each plant and how many truckloads to ship from each plant to each warehouse so that total cost is minimal while all rules are respected.