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SCM Manufacturing Company operates five plants in Appleton, WI , Oshkosh, WI , Omaha, NE , Terre Haute, IN , & Toledo, OH . The

SCM Manufacturing Company operates five plants in Appleton, WI, Oshkosh, WI, Omaha, NE,
Terre Haute, IN, & Toledo, OH. The company ships products from it plants to its distribution
centers (DCs): DC 1, DC 2, & DC 3. You are given the data below regarding plant capacities,
annual fixed costs for the plants (incurred if and only if the plant is used and ships greater
than 0 units), manufacturing cost per unit + shipping cost per unit, and demand at each DC.
Note: The CEO has mandated that the Oshkosh plant MUST be used. You will need to add
a constraint for this mandate and to show your additional work.
Formulate a model to determine which plants to use to minimize total cost.
Manufacturing Cost/ Unit +
Shipping Cost/Unit to DC
Plant
Annual
Fixed Cost DC 1 DC 2 DC 3
Plant
Capacity
Appleton $500,000 $7.75 $9.60 $8.3039,000
Oshkosh $420,000 $7.20 $7.10 $8.0511,000
Omaha $680,000 $6.30 $6.20 $7.5529,000
Terre Haute $580,000 $8.10 $8.45 $5.2245,000
Toledo $600,000 $7.92 $8.34 $9.2528,000
DC Demand =48,50046,50017,900
Formulate the model in your document using the headings listed below:
Decision Variables:
Objective Function:
Constraints:
Additional Work for Constraints:

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