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During the war with Iraq in 1991, the Terraco Motor Company produced a lightweight, all-terrain vehicle code-named J99 Terra for the military. The company is
During the war with Iraq in 1991, the Terraco Motor Company produced a lightweight, all-terrain vehicle code-named \"J99 Terra\" for the military. The company is now planning to sell the Terra to the public. It has five plants that manufacture the vehicle and four regional distribution centers. The company is unsure of public demand for the Terra, so it is considering reducing its fixed operating costs by closing one or more plants, even though it would incur an increase in transportation costs. The relevant costs for the problem are provided in the following table. The transportation costs are per thousand vehicles shipped; for example, the cost of shipping 1,000 vehicles from plant 1 to warehouse C is $32,000. Transportation Costs ($1 ,000s) Annual Annual From to Warehouse Production Fixed Operating Plant A B C D Capacity Cost 1 $56 $21 $32 $65 12,000 $2,100,000 2 $18 $46 $7 $35 18,000 $850,000 3 $12 $T1 $41 $52 14,000 $1,800,000 4 $30 $24 $61 $28 10,000 $1,100,000 5 $45 $50 $26 $31 16,000 $900,000 Annual Demand 6,000 14,000 8,000 10,000 Develop and formulate an appropriate linear programming model for this problem, clearly indicating the decision variables, objective function and the constraints. Please upload a single Excel le in which you must insert a text box and then type the following 1) Definition of decision variables, and 2) LP model. Finally, build the model In Excel and solve it using Excel solver
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