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7. Hansen Controls has been awarded a contract for a large number of control panels. To meet this demand, it will use its existing plants
7. Hansen Controls has been awarded a contract for a large number of control panels. To meet this demand, it will use its existing plants in San Diego and Houston, and consider new plants in Tulsa, St. Louis, and Portland. Finished control panels are to be shipped to Seattle, Denver, and Kansas City. Pertinent information is given in the table. Shipping Cost to Destination Sources Construction Cost Seattle Denver Kansas City Capacity San Diego 5 7 8 2,500 Houston ---- 10 8 6 2,500 Tulsa 350,000 9 4 3 10,000 St. Louis 200,000 12 6 2 10,000 Portland 480,000 4 10 11 10,000 Demand 3,000 8,000 9,000 a) Develop an optimization model (i.e., show the formulated mathematical model) whose solution would reveal which plants to build and the optimal shipping schedule. b) Solve the model using Microsoft Excel Solver Add-in and provide your recommendation. 7. Hansen Controls has been awarded a contract for a large number of control panels. To meet this demand, it will use its existing plants in San Diego and Houston, and consider new plants in Tulsa, St. Louis, and Portland. Finished control panels are to be shipped to Seattle, Denver, and Kansas City. Pertinent information is given in the table. Shipping Cost to Destination Sources Construction Cost Seattle Denver Kansas City Capacity San Diego 5 7 8 2,500 Houston ---- 10 8 6 2,500 Tulsa 350,000 9 4 3 10,000 St. Louis 200,000 12 6 2 10,000 Portland 480,000 4 10 11 10,000 Demand 3,000 8,000 9,000 a) Develop an optimization model (i.e., show the formulated mathematical model) whose solution would reveal which plants to build and the optimal shipping schedule. b) Solve the model using Microsoft Excel Solver Add-in and provide your recommendation
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