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ARG Company operates four plants in Cicero, IL, Oshkosh, WI, Omaha, NE, & Terre Haute, IN. The company ships products from it plants to
ARG Company operates four plants in Cicero, IL, Oshkosh, WI, Omaha, NE, & Terre Haute, IN. The company ships products from it plants to its distribution centers (DCs): DC 1, DC 2, & DC 3. You are given the data below regarding plant capacities, annual fixed costs for the plants (incurred only if the plant is used and ships greater than 0 units), shipping cost per unit, and demand at each DC. The CEO has mandated that the Omaha plant MUST be used. Formulate a model to determine which plants to use to minimize total cost. Shipping Cost/Unit to DC Plant Annual Fixed Cost Plant DC 1 DC 2 DC 3 Capacity Cicero $500,000 1 $5 $6 $8 20,000 Oshkosh $420,000 $6 $7 $9 20,000 Omaha $480,000 $4 $6 $7 25,000 Terre Haute $380,000 $7 $8 $5 20,000 DC Demand = 15,000 14,000 17,000 Formulate the model in your document using the headings listed below: Decision Variables: Objective Function: Constraints: Additional Work for Constraints:
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