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Objective function = Minimize the total cost of supply chain? what is the solution? Use the sensitivity analysis report to solve questions on increased capacity

Objective function = Minimize the total cost of supply chain? what is the solution? Use the sensitivity analysis report to solve questions on increased capacity or plant location shutdown?

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All costs are x1000 USS Table 1. Production + Transportation Costs from Plants to Warehouses Plant Plant WH 1 WH 2 WH 3 Plant Capacity (x1000 units) Plant WH 1 WH 2 WH 3 Capacity (x1000 units Plant 1 Location S 1, 325 $ 1,550 1,160 45 Plant 1 Location 0.0 D.O 30.0 30.0 Plant 2 Location S 1,100 5 1,350 $ 1,550 55 Plant 2 Location 30.0 20.0 0.0 50.0 WH Capacity (x1000) 30 20 30 WH Capacity (x1000) 30.0 20.0 30.0 Table 2. Distribution Costs from Warehouses to Markets Warehouse Market 1 Market 2 Market 3 Market 4 Warehouse Market 1 |Market 2 |Market 3 |Market 4 WH 1 600 $ 570 $ 400 $ 195 WH 0.0 0.0 15.0 15.0 WH 2 500 363 $ 605 508 WH 2 0.0 20.0 0.0 0.0 WH S 522 S 700 800 650 WH 3 25.0 D.O 5.0 E[Market demand] x1000 20 15 20 E[Market sales] x1000 25.0 20.0 15.0 20.0 Objective function = Minimize the total cost of supply chain = 131,785 $ 131,785,000 Net Landed Profit for the Cost Minimization Problem = 4,040 Plant Market 1 Market 2 Market 3 Market 4 Plant 1 Location Plant 2 Location Profit margin is at least 5% 80.00 > = 138,374.25Profit margin is at least 5% 80.00 138,374.25 Plant production maximum capacity constraints Total use of Max Capacity Plant 1 Location 30.0 45 Plant 2 Location 50.0 55 Total Max Cap 100 Cap. Constraints for the flow of products through the WH Used Capacity Max Cap @ W/H j WH 1 30.0 30 WH 2 20.0 20 WH 3 30.0 30 Flow balanceconstraints for warehouses INBOUND OUTBOUND WH 1 30.0 30.0 WH 2 20.0 = 20.0 WH 3 30.0 E 30.0 Market constraints `Distribution to Market Market Demand Sale prices Market 1 25.00 25.0 1,650.00 Market 2 20.00 20.0 1,700.00 Market 3 15.00 15.0 1,705.00 Market 4 20.00 20.0 1,750.00 Total Demand 80

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