Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

g locations for a given product and six major markets. Each manufacturing center has different costs, and each market has different prices for the product.

image text in transcribed
g locations for a given product and six major markets. Each manufacturing center has different costs, and each market has different prices for the product. In addition the distances between manufacturing locations and markets varies and so does the transportation cost. The company has calculated the net profit, cy, of producing the good at location i and selling it in market j. These net profit figures, together with the maximum manufacturing capability at each location and demand at each market are shown in the table below. Markets 1 29 51 59 54 56 27 2 44 43 29 63 53 46 1200 Plants 1800 3 63 37 63 62 46 47 1100 37 29 53 63 63 S1 4 51 53 54 51 43 38 1000 1200 700 1500 500 1100 1900 (a) What is the optimal way for the company to produce and sell its product? [Hint: Remember that the company is a profit maximizer.] (b) What is the interpretation of the dual variables? (c) Which plant (if any) would you recommend expanding? (d) Which plant (if any) would you recommend reducing in size? (e) Which sales territory is the most profitable? (f) Which sales territory is the least profitable? Please solve by using GAMS software and in addition if it is possible load solve summary of problem with Ist. file

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Oracle Databases On The Web Learn To Create Web Pages That Interface With Database Engines

Authors: Robert Papaj, Donald Burleson

11th Edition

1576100995, 978-1576100998

More Books

Students also viewed these Databases questions