DETAILS MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER The Martin-Beck Company operates a plant in St. Louis with an annual capacity of 30,000 units. Product is shipped to regional distribution centers located in Boston, Atlanta, and Houston. Because of an anticipated increase in demand, Martin-Beck plans to increase capacity by constructing a new plant in one or more of the following cities: Detroit, Toledo, Denver, or Kansas City. The estimated annual fixed cost and the annual capacity for the four proposed plants are as follows: Plant Number Proposed Plant Annual Fixed Cost Annual Capacity 1 Detroit $200,000 10,000 2 Toledo $325,000 20,000 3 Denver $350,000 30,000 4 Kansas City $475,000 40,000 The company's long-range planning group developed forecasts of the anticipated annual demand at the distribution centers as follows. Distribution Center Number Distribution Center Annual Demand 1 Boston 20,000 2 Atlanta 30,000 3 Houston 30,000 The shipping cost per unit from each plant to each distribution center is as follows. Distribution Centers Plant Site Boston Atlanta Houston Detroit 5 2 3 Toledo 4 3 4 Denver 9 7 5 10 4 2 Kansas City St. Louis 8 4 3 (a) Formulate a mixed-integer programming model that could be used to help Martin-Beck determine which new plant or plants to open in order to satisfy anticipated demand and minimize total cost (in thousands of dollars). (Let x,, = units shipped in thousands from plant / to distribution center j with the existing plant in St. Louis being plant number 5. Let y = 1 if a plant is constructed in Detroit and 0 if not, y = 1 if a plant is constructed in Toledo and 0 if not, y3 = 1 if a plant is constructed in Denver and 0 if not, and y = 1 if a plant is constructed in Kansas City and 0 if not.) Min s.t.