Month Demand January 14,000 February 16,000 March 14,000 April 14,000 May 16,000 June 10,500 July 14,000 August 20,000 September 20,000 October 16,000 November 14,000 December 10,500 Month Mexican Plant Capacity January 0 February March 2,500 5,000 April 7,500 May 10,000 June 12,500 July 15,000 August 15,000 September 15,000 October 15,000 November 15,000 December 15,000 Figure 1 Plant China Shipping Cost Cost/Unit per 500 units $333 $10,000 Sale Price $400 Mexico $350 $2,000 Month January February March April May June July Customer Demand 14000 18000 14000 14000 16000 10500 14000 Minimum in China 2500 2500 2500 2500 2500 2500 2500 Mexican Plant Capacity 0 2500 5000 7500 10000 12500 15000 Shipping Cost China $20 $20.80 $21.63 $22.50 $23.40 $24.33 $25.31 Shipping Cost Mexico $4 $4.04 $4.08 $4.12 $4.18 $420 Total Unit Cost China $353.00 $353.80 $354.63 $355.50 $358.40 $357.33 Total Unit Cost Mexico $354.00 $354.04 $354.08 $354.12 $354.18 $354.20 $354.25 2500 2500 2500 15000 15000 15000 15000 $28.32 $27.37 $28.47 $29.80 $4.25 $4.29 $4.33 $4.37 $4.42 $4.48 $358.31 $359.32 $380.37 $381.47 $382.80 $383.79 $354.29 $354.33 $354.37 $354.42 $354.48 August September October November December 20000 20000 16000 14000 10500 2500 2500 15000 $30.79 Produced in China 14000 16000 Produced in Mexico 0 0 Total Production 14000 16000 5000 14000 9000 6500 6000 2500 7500 10000 8000 14000 16000 10500 5000 5000 2500 2500 2500 11500 15000 15000 13500 11500 14000 20000 20000 16000 14000 10500 2500 8000 Production Cost China $4,662,000 Shipping Cost China Production Cost Mexico Shipping Cost Mexico $280,000 $0 $0 Total Cost Revenue $4,942,000 Profit $5,800,000 $858,000 $5,328,000 $2,997,000 $2,164,500 $1,998,000 $832,500 $832,500 $1,665,000 $1,665,000 $832,500 $832,500 $832,500 $332,800 $194,888 $146,232 $140,383 $60,833 $83,268 $131,593 $136,857 $71,188 $74,012 $78,973 $0 $1,750,000 $2,825,000 $3,500,000 $2,800,000 $4,025,000 $5,250,000 $5,250,000 $4,725,000 $4,025,000 $2,800,000 $20,402 $30,909 $41,824 $33,832 $48,830 $84,328 $84,971 $59,059 $50,813 $35,701 $5,660,800 $4,962,090 $4,966,641 $5,880,007 $3,728,965 $4,969,596 $7,110,921 $7,116,828 $5,687,725 $4,982,325 $3,745,174 $8,400,000 $5,600,000 $5,800,000 $8,400,000 $4,200,000 $5,800,000 $8,000,000 $8,000,000 $8,400,000 $5,800,000 $4,200,000 Total $739,200 $837,910 $833,359 $719,993 $473,035 $830,404 $889,079 $883,172 $712,275 $817,875 $454,826 $8,048,927 Constraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R. H. Side Increase De cre as e $B$19 Total Production January $C$19 Total Production February 14000 47 14000 1E+30 11500 16000 46.2 16000 1E+30 13500 $D$19 Total Production March 14000 45.368 14000 1E+30 6500 $E$19 Total Production April 14000 44.50272 14000 1E+30 4000 $F$19 Total Production May 16000 43.6028288 16000 1E+30 3500 $G$19 Total Production June 10500 45.7959598 10500 4500 8000 $H$19 Total Production July 14000 45.7539194 14000 3500 11500 $I$19 Total Production August 20000 40.68136442 20000 1E+30 2500 $J$19 Total Production September 20000 39.62861899 20000 1E+30 2500 $K$19 Total Production October 16000 45.62525891 16000 1500 13500 $L$19 Total Production November 14000 45.5815115 14000 3500 11500 $M$19 Total Production December 10500 45.53732661 10500 7000 8000 Figure 2 Variable Cells Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase De crease $B$17 Produced in China January 14000 0 47 1E+30 1 $C$17 Produced in China February 16000 0 46.2 1E+30 0.24 $D$17 Produced in China March 9000 0 45.368 0.5516 1E+30 $E$17 Produced in China April 6500 0 44.50272 1.376076 1E+30 $F$17 Produced in China May $G$17 Produced in China June $H$17 Produced in China July $I$17 Produced in China August $J$17 Produced in China September $K$17 Produced in China October $L$17 Produced in China November $M$17 Produced in China December $B$18 Produced in Mexico January $C$18 Produced in Mexico February $D$18 Produced in Mexico March $E$18 Produced in Mexico April 6000 0 43.6028288 2.23475516 1E+30 2500 -3.129017848 42.66694195 3.129017848 2500 -4.060299768 41.69361963 4.060299768 5000 1E+30 1E+30 0 40.68136442 5.030094176 1E+30 5000 0 39.62861899 6.039954186 1E+30 2500 2500 -7.091495158 38.53376375 7.091495158 2500 -8.186397197 37.3951143 8.186397197 -9.32640774 36.21091887 1E+30 1E+30 9.32640774 1E+30 0 -1 46 1 1E+30 0 -0.24 45.96 0.24 1E+30 5000 0.5516 7500 1.376076 $F$18 Produced in Mexico May $G$18 Produced in Mexico June $H$18 Produced in Mexico July $I$18 Produced in Mexico August $J$18 Produced in Mexico September $K$18 Produced in Mexico October 13500 $L$18 Produced in Mexico November 11500 10000 8000 45.9196 45.878796 2.23475516 45.83758396 0 45.7959598 1E+30 0.5516 1E+30 1.376076 1E+30 2.23475516 1E+30 3.129017848 11500 15000 0 45.7539194 1E+30 4.060299768 5.030094176 45.71145859 1E+30 5.030094176 15000 6.039954186 45.66857318 1E+30 6.039954186 0 45.62525891 1E+30 7.091495158 0 45.5815115 $M$18 Produced in Mexico December 8000 0 45.53732661 1E+30 8.186397197 1E+30 9.32640774