Question: Refer to Problem 14. Suppose that management determined that its cost estimates to modernize the New York plants were too low. Specifically, suppose that the
Refer to Problem 14. Suppose that management determined that its cost estimates to modernize the New York plants were too low. Specifically, suppose that the actual cost is $40 million to modernize each plant.
a. What changes in your previous 0-1 integer linear programming model are needed to incorporate these changes in costs?
b. For these cost changes, what recommendations would you now provide management regarding the modernization plan?
c. Reconsider the solution obtained using the revised cost figures. Suppose that management decides that closing two plants in the same state is not acceptable. How could this policy restriction be added to your 0-1 integer programming model?
d. Based on the cost revision and the policy restriction presented in part (c), what recommendations would you now provide management regarding the modernization plan?
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