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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

  1. 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.
    1. Set up the Excel sheet with the optimization problem, decision variables and constraints
    2. 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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