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2. Kings Closets is trying to choose sites for the production of its mail order wardrobes. It is considering plants in Chicago, Dallas, and
2. Kings Closets is trying to choose sites for the production of its "mail order" wardrobes. It is considering plants in Chicago, Dallas, and Atlanta. Finished caskets will then be sent to their two distribution sites in Trenton and Tacoma, which take orders over the internet. Kings expects demand of 4000 wardrobes per year in Trenton and 2500 in Tacoma. Trenton and Tacoma locations does not have space to hold more closets than demanded. The table below gives annual plant capacity, fixed yearly operating expenses, unit production costs, and unit transportation costs between possible plant locations and the distribution sites: Site Shipping cost Capacity Fixed Annual Operating Costs Production Cost per Unit Shipping cost to to Tacoma Trenton Chicago 3500 $40,000 $200 $75 $50 Dallas Atlanta 3200 $42,000 $160 $95 $70 3700 $45,000 $170 $82 $98 Which plants should be operational, and what should the production quantities and shipping pattern be to minimize Kings' annual expenses? Formulate the linear program (denote the decision variables, objective function and the constraints). Use Excel to which plants should be operational and number to be shipped on each rout that minimizes the total annual expenses for Kings.
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