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[15 points] Bluebell Farms supplies fresh produce to four supermarket chains. Due to the increase of demand, Bluebell Farms anticipates purchasing additional farming land and

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[15 points] Bluebell Farms supplies fresh produce to four supermarket chains. Due to the increase of demand, Bluebell Farms anticipates purchasing additional farming land and developing the distribution network and have selected five potential sites. The following table gives the capacity of each site, demand or each supermarket chain, and the transportation and production costs. Which sites should Bluebell Farms select to expand production? What is the total cost? Production and Transportation cost ($ per ton) Supply Capacity Fixed cost Supermarket 1 Supermarket 2 Supermarket 3 Supermarket 4 (tons/yr) (annual) Site 1 400,000 1,296 823 Site 2 80 350,000 843 1,151 976 1,353 Site 3 120 450,000 1,303 1,263 1,204 70 300,000 1,163 904 1,191 1,358 Site 5 250,000 1,185 925 Demand of supermarket (tons/yr) 1,243 100 65 85 100 905 901 824 Site 4 50 950 80

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