Question
Managers at Recreational Equipment Incorporated (REI) have selected five potential sites for its US fulfillment center facilities. The annual fixed costs and capacities at the
Managers at Recreational Equipment Incorporated (REI) have selected five potential sites for its US fulfillment center facilities. The annual fixed costs and capacities at the five locations, the annual demands in the six markets, and the per unit production and transportation costs associated with shipping an item from each potential site to each potential market are shown in the tables provided in the "REI" worksheet. Assume that the firm will open at most 1 facility at each potential site.
Use Excel Solver to develop a linear programming to determine where the firm should build facilities and how many units it should ship from each facility to each market in order to minimize the total facility, production, and transportation cost.
Once you have solved for the optimal solution, enter the following values from the optimal solution.
1. The optimal total cost (facility + production + transportation) rounded to the nearest dollar:
2. The optimal number of units shipped from Statesville, NC to the Southeast:
3. The optimal number of units shipped from Goodyear, AZ to the Northwest:
4. The optimal number of units shipped from Bedford, PA in total:
5. The optimal total number of facilities built:
Units Shipped \begin{tabular}{|l|c|c|c|} \hline & & & OpenFacility(1=yes,0=no) \\ \hline 11 & Fixed Cost & Capacity & \\ \hline 12 & 11,000,000 & 500,000 & \\ \hline 13 & 13,000,000 & 500,000 & \\ \hline 14 & 18,000,000 & 500,000 & \\ \hline 15 & 16,000,000 & 500,000 & \\ \hline 16 & 17,000,000 & 500,000 & \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline & \\ Potential Site & Northeast \\ \hline Bedford, PA & \\ \hline Statesville, NC & \\ \hline Boulder, CO & \\ \hline Goodyear, AZ & \\ \hline Sumner, WA & \\ \hline Total Received & \\ \hline Demand & =,>=,? \\ \hline Total Facilities Cost & \\ \hline Total Transport Cost & \\ \hline \hline Total Cost & \\ \hline \end{tabular}Step by Step Solution
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