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CASE: A wipe company was founded in the 1990s and currently produces 2 types of products: B and D. Annual demand for the products was as shown in Table 2.1. At that time, the company had one factory in City Q that produces both products for the entire country. Product B line in City Q facility had an annual capacity of 5,000 thousand (5 million) units, an annualized fixed cost of $5,000 thousand a year, and a variable cost of $10 per unit. Product D line in City Q had an annual capacity of 1,400 thousand units, an annualized fixed cost of $1,500 thousand a year, and a variable cost of $20 per unit. The transportation costs per unit are shown in Table 2.2. Zone NW SW UM LM NT SE Table 2. Product B Demand 500 700 900 800 1000 600 Product D Demand 50 90 120 65 120 10*X City Q NJ AT LA NW 6.X 6.60 6.72 4.36 Table 2.2 SW UM 6.32 3.68 6.X 5.76 6.48 5.X 3.68 6.32 LM 4.04 5.92 4.08 6.X NE 5.76 3.68 4.8 6.72 SE 5.96 4.X 3.64 6.60 Management had identified cities NJ, AT, and LA as potential sites for new facilities. Each new plant could have a Product B line, a product D line, or both A new Product B line had an annual capacity of 3,000 thousand units, an annual fixed cost of $2,200 thousand, and a variable production cost of $9 per unit. A new Product D line had an annual capacity of 1,250 thousand units, an annual fixed cost of $1,500 thousand, and a variable production cost of $18 per unit . Management had to decide whether to build a new plant and if so, which product lines to put into the new plant. QUESTIONS: 1. Form data tables including the total variable costs, fixed costs, demands, and capacities for each product. 2. What is the annual cost of serving the entire nation from City Q? 3. Assume that City Q plant will be maintained at its current capacity but could be run at lower utilization Do you recommend adding any plant(s)? If so, where should the plant(s) be built and what lines should be included? What is the total cost? 4. If the management could design a new network from scratch (assume that they did not have City Q plant but could build it at the cost and capacity specified above), what production network would you recommend? Assume that any new plant built beside City Q would be at the cost and capacity specified under the new network options. What is the total cost? 5. Evaluate the alternative solutions you obtained and compare them I. Use the last two digits of your student number for X in the questions. If your student number is 2021234, X=34. II. Attach the software files including your solutions. LINDO files should be saved with .ltx" file extension. III. Submissions via itslearning must be completed before 19:00 on December 5, 2021. Late submission is not allowed for whatever reason it might be. Also, submission via message or email, or any other way is not allowed. IV. All the reports will be subject to a plagiarism check! Do not cheat! V. You must write your answers in handwriting on an A4 paper, scanning it to a SINGLE PDF file with AdobeScan or CamScanner or any other tool. Before your answers, you must write the following information on the first page. Otherwise, your answers will not be accepted as submitted. CASE: A wipe company was founded in the 1990s and currently produces 2 types of products: B and D. Annual demand for the products was as shown in Table 2.1. At that time, the company had one factory in City Q that produces both products for the entire country. Product B line in City Q facility had an annual capacity of 5,000 thousand (5 million) units, an annualized fixed cost of $5,000 thousand a year, and a variable cost of $10 per unit. Product D line in City Q had an annual capacity of 1,400 thousand units, an annualized fixed cost of $1,500 thousand a year, and a variable cost of $20 per unit. The transportation costs per unit are shown in Table 2.2. Zone NW SW UM LM NT SE Table 2. Product B Demand 500 700 900 800 1000 600 Product D Demand 50 90 120 65 120 10*X City Q NJ AT LA NW 6.X 6.60 6.72 4.36 Table 2.2 SW UM 6.32 3.68 6.X 5.76 6.48 5.X 3.68 6.32 LM 4.04 5.92 4.08 6.X NE 5.76 3.68 4.8 6.72 SE 5.96 4.X 3.64 6.60 Management had identified cities NJ, AT, and LA as potential sites for new facilities. Each new plant could have a Product B line, a product D line, or both A new Product B line had an annual capacity of 3,000 thousand units, an annual fixed cost of $2,200 thousand, and a variable production cost of $9 per unit. A new Product D line had an annual capacity of 1,250 thousand units, an annual fixed cost of $1,500 thousand, and a variable production cost of $18 per unit . Management had to decide whether to build a new plant and if so, which product lines to put into the new plant. QUESTIONS: 1. Form data tables including the total variable costs, fixed costs, demands, and capacities for each product. 2. What is the annual cost of serving the entire nation from City Q? 3. Assume that City Q plant will be maintained at its current capacity but could be run at lower utilization Do you recommend adding any plant(s)? If so, where should the plant(s) be built and what lines should be included? What is the total cost? 4. If the management could design a new network from scratch (assume that they did not have City Q plant but could build it at the cost and capacity specified above), what production network would you recommend? Assume that any new plant built beside City Q would be at the cost and capacity specified under the new network options. What is the total cost? 5. Evaluate the alternative solutions you obtained and compare them I. Use the last two digits of your student number for X in the questions. If your student number is 2021234, X=34. II. Attach the software files including your solutions. LINDO files should be saved with .ltx" file extension. III. Submissions via itslearning must be completed before 19:00 on December 5, 2021. Late submission is not allowed for whatever reason it might be. Also, submission via message or email, or any other way is not allowed. IV. All the reports will be subject to a plagiarism check! Do not cheat! V. You must write your answers in handwriting on an A4 paper, scanning it to a SINGLE PDF file with AdobeScan or CamScanner or any other tool. Before your answers, you must write the following information on the first page. Otherwise, your answers will not be accepted as submitted