Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hot&Cold and CaldoFreddo are two European manufacturers of homeappliances that have merged. Hot&Cold has plants in France, Germany, and Finland, whereas CaldoFreddo has plants in
Hot&Cold and CaldoFreddo are two European manufacturers of homeappliances that have merged. Hot&Cold has plants in France, Germany, and Finland, whereas CaldoFreddo has plants in the UnitedKingdom and Italy. The European market is divided into four regions: north, east, west, and south. Plant capacities millions of units per year annual fixed costs millions of euros per year regional demand millions of units and variable production and shipping costs euros per unit are as shown in
Table Capacity, Cost, and Demand Data for Hot&Cold
and CaldoFreddo. Each appliance sells for an average price of euros. All plants are currently treated as profit centers, and the company pays taxes separately for each plant. Tax rates in the various countries are as follows: France, ; Germany, ; Finland, ; UK; and Italy,
For each case below, provide i Integer programming formulation ii optimizer software output Formulation and solution and iii Network design in tabular format.
a The case before the merger where all plants are kept open if the objective is cost minimization Production and shipping costs as well as annual fixed cost
b The case before the merger where all plants are kept open if the objective is aftertax profit maximization.
c In the case after the merger where all plants are kept open if the objective is cost minimization Production and shipping costs as well as annual fixed costs
d In the case after the merger, where all plants are kept open if the objective is aftertax profit maximization.
e The case after the merger if the plants can be shut down Saving annual fixed cost for the shutdown plants if the objective is cost minimization.
f The case after the merger if the plants can be shut down Saving annual fixed cost for the shutdown plants if the objective is aftertax profit maximization.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started