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DryIce, Inc., is a manufacturer of air conditioners that has seen its demand grow significantly. The company anticipates nationwide demand for the next year to
- DryIce, Inc., is a manufacturer of air conditioners that has seen its demand grow significantly. The company anticipates nationwide demand for the next year to be 110k units in the East, 180k units in the South, 120k units in the Midwest and 100k units in the West. Managers at DryIce are designing the manufacturing network, and have selected four potential sites - New York, Atlanta, Chicago and San Diego. Plants could have a capacity of either 200k or 400k units. The annual fixed costs at the four locations are shown along with the cost of producing and shipping air conditioners to each of the four markets in an Excel Sheet named DryIce.
- Set up the Excel sheet with the optimization problem, decision variables and constraints
- Based on your Solver solution, where should DryIce build its factories and how large should they be?
Inputs - Costs, Capacities, Demands | ||||||||
Production and Shipping Cost per 1,000 Units | Fixed | Small | Fixed | Large | ||||
Supply Region | East | South | Midwest | West | Cost ($) | Plant | Cost ($) | Plant |
New York | 211 | 232 | 240 | 300 | 6,000 | 200 | 10,000 | 400 |
Atlanta | 232 | 212 | 230 | 280 | 5,500 | 200 | 9,200 | 400 |
Chicago | 238 | 230 | 215 | 270 | 5,600 | 200 | 9,300 | 400 |
San Diego | 299 | 280 | 270 | 225 | 6,100 | 200 | 10,200 | 400 |
Demand | 110 | 180 | 120 | 100 |
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