Question
Nice Trailer company makes trailers at plants in Kansas City, Denver, and Raleigh, and ships these units to distribution centers in Birmingham, Milwaukee, Los Angeles,
Nice Trailer company makes trailers at plants in Kansas City, Denver, and Raleigh, and ships these units to distribution centers in Birmingham, Milwaukee, Los Angeles, and Seattle. In planning production for the next year, Nice Trailer company estimates unit shipping cost between any plant and distribution center, plant capacities, and distribution center demands. These numbers are given in the table. Nice Trailer company faces the problem of determining how much to ship between each plant and distribution center to minimize the total transportation cost, while not exceeding capacity and while meeting demand.
Formulate an LP to minimize the total shipping cost and identify the constraints and objective function for the above case.
Using the table below to answer the following question:
Alternative
| State of Nature
| ||
Good market | Average market | Poor market | |
Build large office
| 75,000 | 25,000 | -40,000 |
Build small office | 100,000 | 35,000 | -60,000 |
Do nothing
| 0 | 0 | 0 |
Probability | 0.25 | 0.5 | 0.25
|
Note : Answer please In Word Version
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