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Recall the Sun Oil example from class. a) If a plant must be built in Europe, what constraint(s) would you add to the model? b)

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Recall the Sun Oil example from class.

a) If a plant must be built in Europe, what constraint(s) would you add to the model?

b) Re-run Solver with your updated model from part a. Submit your Excel file.

c) What is the new optimal solution with the updated model from part a?

d) What is the minimum cost of the optimal solution using the model from part a?

D H Large Capacity 81 101 130 Fixed Cost (Small) Small Fixed Cost (Large) (thousands of $) Capacity (thousands of $) 6,000 9,000 4,500 6,750 6,500 9,750 4,100 6,150 4,000 6,000 95 111 12 B F 1 Inputs - Costs, Capacities, Demands 2 Production and Transportation Cost (thousands of $) per 1,000,000 3 Supply Region N. America S. America Europe Asia Africa 4 N. America 92 115 5 S. America 117 77 108 98 100 6 Europe 102 105 119 7 Asia 115 125 90 59 8 Africa 142 100 103 105 71 9 Demand 8 14 16 10 11 Decision Variables and Constraints 12 Demand Region - Production Allocation 13 Supply Region (Capacity) N. America S. America Europe Asia Africa 14 N. America (Small) 15 S. America (Small) 16 Europe (Small) 17 Asia (Small) 18 Africa (Small) 19 N. America (Large) 20 S. America (Large) 21 Europe (Large) 22 Asia (Large) 23 Africa (Large) Demand LHS Plant Decision (1=open) Supply LHS Supply RHS or 1 1 1 COOOOOOOOOO 1 1 1 1 1 Demand RHS 12 8 14 $ 23,751 28 Objective 20 Let i = 1,2,..., 10: Index for potential plant locations/capacity levels, where: 1 represents North America (Small) 2 represents South America (Small) 3 represents Europe (Small) 4 represents Asia (Small) 5 represents Africa (Small) 6 represents North America (Large) 7 represents South America (Large) 8 represents Europe (Large) 9 represents Asia (Large) 10 represents Africa (Large) Let j = 1,2,...,5: Index for markets/demand points, where: 1 represents North America 2 represents South America 3 represents Europe 4 represents Asia 5 represents Africa Let y = 1 if plant is opened at location i, o otherwise Let Xij = quantity shipped from plantito marketi min 6000 y + 4500y2 + 6500y3 + 4100y4 + 4000ys +900076 +6750y7 +9750yg + 6150y, + 6000y10 +81x11 +92x12 + 101X13 + 130X14 + 115x15 +117x21 + 77X22 + 108x 23 +98X24 + 100x 25 +102X 31 + 105X32 +95X 33 + 119X34 + 111X35 +115x41 + 125x42 +90x 43 +59x44 + 74x 45 +142x 51 + 100X52 + 103x 53 + 105x54 + 71x 55 +81x 61 +92x62 + 101X63 + 130X64 + 115x65 +117x71 + 77X72 +108X73 +98X74 + 100x75 +102x 81 + 105 Xg2 +95x83 + 119x84 +111X85 +115x91 + 125X92 +90x93 +59X94 + 74x95 +142x10.1 + 100x10,2 + 103x10,3 + 105x10,4 + 71x10,5 s.t. X11+ X21+ X 31+ X 41+ X51+ X 61+X71+ X 81+ X91+ X10,1 = 12 X12+X 22+ X 32+ X42+ X52+ X 62+ X 71+ X82+ X92+ X 10,2 = 8 X13+X23+ X 33+ X43+X53+ X 63+ X 73+ X83+ X 93+ X10,3 = 14 X14+X24+ X 34+ X44+X54+ X 64+ X 74+ X84+ X94+ X10,4 = 16 X15+X 25+ X 35+ X45+X55+ X 65+ X 75+ X85+ X 95+ X10,5 = 7 *11+ X12+ X13+ X14+ X15

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