Facility Location
1. **Problem Statement:**
We have two sets of cost functions for four communities each, representing total cost as a function of quantity $x$. We need to plot cost curves, find break-even points, and determine the best location for given demands.
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### For Mr. Irfan's communities:
2. **Cost functions:**
- Dhaka: $y = 250000 + 60x$
- Chittagong: $y = 400000 + 35x$
- Khulna: $y = 700000 + 20x$
- Barisal: $y = 600000 + 30x$
3. **Break-even analysis:**
Set pairs equal to find intersection points (break-even quantities):
- Dhaka vs Chittagong:
$$250000 + 60x = 400000 + 35x \Rightarrow 25x = 150000 \Rightarrow x = 6000$$
- Chittagong vs Barisal:
$$400000 + 35x = 600000 + 30x \Rightarrow 5x = 200000 \Rightarrow x = 40000$$
- Barisal vs Khulna:
$$600000 + 30x = 700000 + 20x \Rightarrow 10x = 100000 \Rightarrow x = 10000$$
- Chittagong vs Khulna:
$$400000 + 35x = 700000 + 20x \Rightarrow 15x = 300000 \Rightarrow x = 20000$$
- Dhaka vs Barisal:
$$250000 + 60x = 600000 + 30x \Rightarrow 30x = 350000 \Rightarrow x = 11666.67$$
- Dhaka vs Khulna:
$$250000 + 60x = 700000 + 20x \Rightarrow 40x = 450000 \Rightarrow x = 11250$$
4. **Ranges where each community is cheapest:**
- For low $x$, Dhaka is cheapest due to low fixed cost despite high variable cost.
- Between $x=6000$ and $x=10000$, Barisal becomes cheaper than Dhaka and Chittagong.
- For $x > 10000$, Khulna is cheapest due to lowest variable cost.
5. **Best location for demand 14,000 units:**
Calculate total costs:
- Dhaka: $250000 + 60 \times 14000 = 250000 + 840000 = 1,090,000$
- Chittagong: $400000 + 35 \times 14000 = 400000 + 490000 = 890,000$
- Khulna: $700000 + 20 \times 14000 = 700000 + 280000 = 980,000$
- Barisal: $600000 + 30 \times 14000 = 600000 + 420000 = 1,020,000$
**Best location:** Chittagong with cost 890,000.
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### For Mr. Robin's communities:
6. **Cost functions:**
- Dhaka: $y = 250000 + 11x$
- Chittagong: $y = 100000 + 30x$
- Khulna: $y = 150000 + 20x$
- Barisal: $y = 200000 + 35x$
7. **Break-even analysis:**
- Dhaka vs Chittagong:
$$250000 + 11x = 100000 + 30x \Rightarrow 19x = 150000 \Rightarrow x = 7894.74$$
- Dhaka vs Khulna:
$$250000 + 11x = 150000 + 20x \Rightarrow 9x = 100000 \Rightarrow x = 11111.11$$
- Dhaka vs Barisal:
$$250000 + 11x = 200000 + 35x \Rightarrow 24x = 50000 \Rightarrow x = 2083.33$$
- Chittagong vs Khulna:
$$100000 + 30x = 150000 + 20x \Rightarrow 10x = 50000 \Rightarrow x = 5000$$
- Chittagong vs Barisal:
$$100000 + 30x = 200000 + 35x \Rightarrow 5x = -100000 \Rightarrow x = -20000$$ (no positive intersection)
- Khulna vs Barisal:
$$150000 + 20x = 200000 + 35x \Rightarrow 15x = -50000 \Rightarrow x = -3333.33$$ (no positive intersection)
8. **Ranges where each community is cheapest:**
- For $x < 2083$, Barisal is cheapest.
- Between $2083$ and $5000$, Chittagong is cheapest.
- Between $5000$ and $7894.74$, Khulna is cheapest.
- For $x > 7894.74$, Dhaka is cheapest.
9. **Best location for demand 8,000 units:**
Calculate total costs:
- Dhaka: $250000 + 11 \times 8000 = 250000 + 88000 = 338,000$
- Chittagong: $100000 + 30 \times 8000 = 100000 + 240000 = 340,000$
- Khulna: $150000 + 20 \times 8000 = 150000 + 160000 = 310,000$
- Barisal: $200000 + 35 \times 8000 = 200000 + 280000 = 480,000$
**Best location:** Khulna with cost 310,000.
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**Summary:**
- Mr. Irfan's best location for 14,000 units is Chittagong.
- Mr. Robin's best location for 8,000 units is Khulna.