1. General Appliance Corporation- adapted from Business Analytics by J. R. Evans (20 pts) General Appliance Corporation (GAC) produces refrigerators at two plants: Marietta, Georgia and Minneapolis Minnesota. These plants have corresponding capacities of 1200 and 800 refrigerators respectively. The plants ship the refrigerators to major distribution centers in Cleveland, Baltimore, Chicago and Phoenix. These centers have demand requirements of 150, 350, 500 and 1000 respectively. The variable costs to ship from each plant to each center are given below Cost per To Marietta $12.60 $14.35 $11.52 $17.58 From. $9.75 $16.26 $8.11 $17.92 Chicago Phoenix (a) What type of problem is this? As a result, what can we say about the optimal values of the variables being integers? (0 points) (b) State the decisions to be made, the objective and the constraints in words using = or = in the constraints. (Handwrite answer, 5 points) (c) Define your decisions in part (a) algebraically as decision variables. Then, using your objective and constraints in part (b), formulate the problem as an algebraic linear optimization model (Handwrite answer, 5 points) (d) Construct an EXCEL model for this problem and use Solver to determine an optimal solution (Submit answer via Blackboard, 5 points) (e) The company is considering the possibility of expanding the capacity of its plant in Marietta Assuming that the same variable costs will apply, give a graph that depicts how GAC's optimal cost changes in terms of the capacity of Marietta between 1200 and 2000. (Handwrite answer,5 points) 1. General Appliance Corporation- adapted from Business Analytics by J. R. Evans (20 pts) General Appliance Corporation (GAC) produces refrigerators at two plants: Marietta, Georgia and Minneapolis Minnesota. These plants have corresponding capacities of 1200 and 800 refrigerators respectively. The plants ship the refrigerators to major distribution centers in Cleveland, Baltimore, Chicago and Phoenix. These centers have demand requirements of 150, 350, 500 and 1000 respectively. The variable costs to ship from each plant to each center are given below Cost per To Marietta $12.60 $14.35 $11.52 $17.58 From. $9.75 $16.26 $8.11 $17.92 Chicago Phoenix (a) What type of problem is this? As a result, what can we say about the optimal values of the variables being integers? (0 points) (b) State the decisions to be made, the objective and the constraints in words using = or = in the constraints. (Handwrite answer, 5 points) (c) Define your decisions in part (a) algebraically as decision variables. Then, using your objective and constraints in part (b), formulate the problem as an algebraic linear optimization model (Handwrite answer, 5 points) (d) Construct an EXCEL model for this problem and use Solver to determine an optimal solution (Submit answer via Blackboard, 5 points) (e) The company is considering the possibility of expanding the capacity of its plant in Marietta Assuming that the same variable costs will apply, give a graph that depicts how GAC's optimal cost changes in terms of the capacity of Marietta between 1200 and 2000. (Handwrite answer,5 points)
