Question
I need to have solver solution The City's Department of Transportation (on its own and as a client to the Department of Design and Construction)
I need to have solver solution
The City's Department of Transportation (on its own and as a client to the Department of Design and Construction) uses about 400,000 tons of asphalt each year to repave streets. There are eight asphalt plants located in and around New York City, one of which is owned by the City and staffed by City employees. Each plant's capacity (the maximum it can produce) along with the price for which it is willing to sell asphalt to the City (the cost to the City at the plant) are listed in Table 1.
Since the specific streets that will be paved are all over a borough, the Department uses a central point to determine distance from the plants to job sites. It costs $0.15 per ton per mile to truck asphalt from a plant to a job site. Distances from each plant to the Borough centers are displayed in table 2. Use these distances as they are to calculate the transportation costs. Table 3 displays the amount of asphalt each borough expects to need in the next year.
- How much should it take from each plant? The City can buy from as many plants as it wants.
- Would it make sense for the City to expand its own plant? How much would it be willing to invest in that expansion? Assume it can expand without limit and produce at the same cost.
- Using the same information that we used to solve the original Cost of Asphalt problem, answer the questions below with the following new information: It has been estimated that the cost of expanding the Hamilton Avenue Plant beyond its current 100,000-ton capacity would cost $8 per ton of expansion. That is, if the City decided to expand the capacity of the plant by 10,000 tons to 110,000, it would incur a cost of $80,000. (Assume that is an amortized cost estimate and that cost could be added directly to the total cost function.)
1.How much capacity would it add in that expansion? Assume it can expand without limit and produce at the same cost.
2.How much new capacity would the City add if the cost was $5 per ton?
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