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Correct all incorrect answers:The total shipping cost from the plants to the warehouses is Incorrect answer: 2 1 9 3 . 7 5 . The

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Correct all incorrect answers:The total shipping cost from the plants to the warehouses is
Incorrect answer:
2193.75
.
The total shipping cost from the warehouses to the retail locations is
Incorrect answer:
337.50
The overall total shipping costs is
Incorrect answer:
2531.25
.
The number of lots shipped from Sacramento warehouse to the retail location in Anaheim is
Incorrect answer:
150
.
The number of lots left in the Sacramento warehouse is
Incorrect answer:
225
.
The number of lots left in the Ventura warehouse is
Incorrect answer:
425
.
If you can change the capacity of one of the warehouses (e.g. add 1 unit to the right-hand-side), which one would you recommend to change in this problem that would most benefit the company?
Correct answer:
Ventura
. This is because the shadow price for the constraint is
Correct answer:
negative
which means that the company
Correct answer:
saves
Incorrect answer:
1.25
dollars for every additional unit added to the right-hand-side, up to
Incorrect answer:
225
maximum quantity. Otherwise, we need to solve for a new solution.
If you must increase the demand of one of the retail locations (e.g. add 1 unit to the right-hand-side), which one would you recommend the company to avoid increasing in this problem that would most benefit the company?
Correct answer:
San Diego
. This is because the shadow price for the constraint is
Correct answer:
positive
which means that the company
Correct answer:
loses
Incorrect answer:
3.75
dollars for every additional unit added to the right-hand-side.
NOTE:
-You should have 2 sets of decision variables: the quantities being shipped from production plants to the two warehouses and the quantities being shipped from the warehouses to the retail locations. (Hint: use a comma to separate the 2 sets of decision variables in the By changing variable cells in Solver Parameters).
-Quantities shipped to the warehouse must be met, no more or less.
-At the minimum, demands from the different retail locations must be met.
-Quantities shipped from the different warehouses cannot be more than their available quantities.
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