Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A food company has plants in cities 1, 2, and 3. The company produces and ships its product to four distribution centers A, B, C

  1. A food company has plants in cities 1, 2, and 3. The company produces and ships its product to four distribution centers A, B, C and D across the nation. Each week the company can produce 400 units of its product in plant 1, 300 in plant 2, and 300 in plant 3. The company plans to ship 200 units to center A, 250 to center B, 200 to center C, and 350 to center D in the coming week, based on the forecast of the demands made by each regional sales team. The transportation costs per unit of each product between the locations of its facilities are given in the table below.

image text in transcribed

  1. Note: You need to use the Analytic Solver to solve question (c).
    1. Solve the spreadsheet model and include the sensitivity report. Make sure to show formulas
    2. If the demand in distribution center A decreases by 50 units, what would happen to the total optimal cost? Answer the question from the sensitivity report.
    3. Generate a parameter analysis report that systematically generate the optimal solution and the total cost when the only change is that the demand of distribution center D is changed from 350 units to 400 units with an increment of 10 units.
    4. Summarize the report descriptively, i.e. describe how the solution and the total cost change as the demand in distribution center D increases.
    5. ) If the demand in distribution center D decreases by 100 units (from 350), what would happen to the total optimal cost? Answer the question from the parameter analysis report in (d).
Unit Shipping Cost Distribution Center B Center C Center A Center D 00 Plant 1 Plant 2 Plant 3 13 Shipment Note: The "

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Distinguish between economic growth and economic development.

Answered: 1 week ago

Question

Assess three steps in the selection process.

Answered: 1 week ago

Question

Identify the steps in job analysis.

Answered: 1 week ago