case study

Unit3-CaseStudy-C06_02-updated.xlsx

Data

Carrier selection for telecommunication company with volume discounts Albright: See "Selecting Telecommunication Carriers to Obtain Volume Discounts" in Interfaces, Vol. 35, No. 2, 2005.
Inputs
Price intervals
	Lower limit	Upper limit
Carrier 1	0	2000
	2000	4000
	4000	50000 Albright: The upper limit for each 3rd price interval is essentially infinite, so any large number here will suffice.
Carrier 2	0	2500
	2500	5000
	5000	50000
Carrier 3	0	2000
	2000	3500
	3500	50000
Unit prices	Month 1					Month 2
	Dest 1	Dest 2	Dest 3	Dest 4	Dest 5	Dest 1	Dest 2	Dest 3	Dest 4	Dest 5
Carrier 1	9	12	15	10	15	9	12	15	10	15
	8	10	13	8	13	8	10	13	8	13
	7	8	10	5	10	7	8	10	5	10
Carrier 2	10	13	17	11	16	10	13	17	11	16
	9	11	15	9	14	9	11	15	9	14
	8	9	13	5	12	8	9	13	5	12
Carrier 3	8	14	17	12	14	8	14	17	12	14
	7	12	13	10	12	7	12	13	10	12
	6	10	9	8	9	6	10	9	8	9
Penalties per call-minute											Lower and upper bounds on capacity
	Month 1					Month 2						Month 1		Month 2
	Dest 1	Dest 2	Dest 3	Dest 4	Dest 5	Dest 1	Dest 2	Dest 3	Dest 4	Dest 5		Lower bound	Upper bound	Lower bound	Upper bound
Carrier 1	2					2					Carrier 1	0	2000	0	2000
Carrier 2			2					2			Carrier 2	500	2000	500	2000
Carrier 3		3					3				Carrier 3	0	2500	0	2500
Forecasted volumes	500	1000	800	1200	900	700	1000	600	1500	700