Question
Med Tech is a medical equipment manufacturer that has two manufacturing plants (Austin, TX and Charlotte, NC). The company has recently acquired a maker of
Med Tech is a medical equipment manufacturer that has two manufacturing plants (Austin, TX and Charlotte, NC). The company has recently acquired a maker of portable x-ray machines and would like to move the production to its own manufacturing plants. Both the Austin plant and the Charlotte plant can produce up to 30,000 x-ray machines per year. Because Med Tech produces a variety of other products in these plants, no fixed annual cost (overhead) is separately attributed to the production of the x-ray machines. The machines are sold worldwide in five markets: Asia-Pacific (annual demand = 15,000), Europe (annual demand = 8,000), North America (annual demand = 10,000), Middle East (annual demand = 3,000), and South America (annual demand = 4,000). Unit costs from Facility (i) to Market (j)
Facility\Market Asia-Pacific Europe North America Middle East South America Austin, TX $200 $195 $70 $240 $90 Charlotte, NC $250 $180 $75 $230 $115
Using the Capacitated Facility Location Model, determine the production assignment for the Charlotte and Austin plants that will minimize costs. Submit your excel model with appropriate formulas.
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