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The Martin - Beck Company operates a plant in St . Louis with an annual capacity of 3 0 , 0 0 0 units. Product
The MartinBeck Company operates a plant in St Louis with an annual capacity of units. Product is shipped to regional distribution centers located in Boston, Atlanta, and Houston. Because of an anticipated increase in demand, MartinBeck plans to increase capacity by constructing a new plant in one or more of the following cities: Detroit, Toledo, Denver, or Kansas City. The estimated annual fixed cost and the annual capacity for the four proposed plants are as follows:
Proposed PlantAnnual Fixed CostAnnual CapacityDetroit$Toledo$Denver$Kansas City$
The companys longrange planning group developed forecasts of the anticipated annual demand at the distribution centers as follows:
Distribution CenterAnnual DemandBostonAtlantaHouston
The shipping cost per unit in dollars from each plant to each distribution center is as follows:
Distribution CentersPlant SiteBostonAtlantaHoustonDetroitToledoDenverKansas CitySt Louis
aDevelop a mixedinteger programming model that could be used to help MartinBeck determine which new plant or plants to open in order to satisfy anticipated demand. Solve the model and answer the following questions. What is the optimal cost?$ What is the optimal set of plants to open? Select your answer Kansas CityDetroit & ToledoToledoDetroitItem bUsing equation find a secondbest solution. What is the optimal set of plants to open? Select your answer DetroitDetroit & DenverDenverDetroit & ToledoItem What is the increase in cost versus the best solution from part a$
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