During 2001, many European markets for mobile phones reached saturation.

During 2001, many European markets for mobile phones reached saturation. Because of this, mobile phone operators started to shift their focus from growth and market share to cut-ting costs. One way to do this is to reduce spending on international calls. These calls are routed through network operating companies called carriers. The carriers charge per call-minute for each destination, and they often use a discount on total business volume to price their services. A mobile phone operator must decide how to allocate destinations to carriers.

V-Mobile, a mobile phone operator in Denmark, must make such a decision for a T-month planning horizon when it has C carriers to choose from, D destinations for its customers’ calls, and there are I price intervals for a typical carrier. (These intervals define a carrier’s discount structure.) The inputs include the following:

■ The price per call-minute for destination d from carrier c in price interval i in month t

■ The (forecasted) number of call-minutes for destination din month t

■ The lower and upper limits for carrier c in price interval i

■ The lower and upper limits on capacity (number of call-minutes) for carrier c in month t

■ The penalty per call-minute (to discourage poor-quality options) for carrier c to destination din month t

V-Mobile wants to find a least-cost way of routing its call-minutes through the various carriers. Of course, it hopes to take advantage of price discounts offered by the carriers.

The file c06_02.xlsxprovides inputs for one version of V-Mobile’s problem. This version has T = 2, C = 3, D = 5, and I = 3. The decision variables should include the following:

■ The number of call-minutes routed through carrier c to destination din price interval i in month t

■ A binary variable for each carrier c and price interval i combination that equals 1 if the total call-minutes for this carrier (over all destinations and months) falls in price interval i, and equals 0 otherwise.

Develop an optimization model that helps V-Mobile allocate its international calls in a cost-efficient manner. Then write a brief memo stating (1) how V-Mobile should implement your results for this particular version of the problem and (2) how the model would need to be modified for other potential problem parameters.

 

Stressed over that homework?

Essay deadline breathing down your neck?

Let’s cut to the chase: Why struggle when you can ace it with zero hassle?

Whether it’s essays, research papers, or assignments — we’ve got you covered.

✅ Expert writers
✅ 100% original work
✅ No AI tools, just real pros

Stressed about your essay or homework? Get a top-quality custom essay NOW!!! Stop worrying. Start succeeding.

GradeEssays.com
We are GradeEssays.com, the best college essay writing service. We offer educational and research assistance to assist our customers in managing their academic work. At GradeEssays.com, we promise quality and 100% original essays written from scratch.
Contact Us

Enjoy 24/7 customer support for any queries or concerns you have.

Phone: +1 213 3772458

Email: support@gradeessays.com

© 2024 - GradeEssays.com. All rights reserved.

WE HAVE A GIFT FOR YOU!

15% OFF 🎁

Get 15% OFF on your order with us

Scroll to Top