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The general approach for solving each of the issues should be: a. Formulate the linear programming model for the issue algebraically for each decision. Fore

The general approach for solving each of the issues should be:

a. Formulate the linear programming model for the issue algebraically for each decision. Fore each Decision, group this into three sections: 1) Definition of Decision Variables), 2) Objective Function Equation , and 3) Constraints Equations

b. Set up and solve this problem using Excel. Include screenshots of this in the appendix to the memo or report. (5 marks for each decision)

c. Provide your answers and recommendations to the Manager of the company (include your recommendations for all issues in a single decision.

.Penny Chairs has two plants that manufacture and ship chair parts to other manufacturers. Penny Chairs sells and ships to four manufacturers. The cost of shipping one chair from a plant to a customer is given in the following table.

Plant/Customer

Mesquite

Furniture

Tonopah Fashions

Sumerlin

Appliance

Charleston

Furnishings

Bruderheim $1.70 $2.30 $2.50 $2.15
Cardston $1.95 $2.35 $1.65 $2.95

Exact Customer demand/week

(cases)

1200 2000 2500 1400

The plant in Bruderheim has a capacity of 3500 cases per week, and the Cardston plant can produce 4000 cases per week.

A. Derive the minimum cost shipping plan.

B. Tonopah Fashions is experiencing some financial problems. If Tonopah were to reduce its order by 1000 cases, how would the minimum cost shipping plan change?

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