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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 Plant Annual Fixed Cost Annual Capacity
Detroit $
Toledo $
Denver $
Kansas City $
The companys longrange planning group developed forecasts of the anticipated annual demand at the distribution centers as follows:
Distribution Center Annual Demand
Boston
Atlanta
Houston
The shipping cost per unit in dollars from each plant to each distribution center is as follows:
Distribution Centers
Plant Site Boston Atlanta Houston
Detroit
Toledo
Denver
Kansas City
St Louis
a Develop 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
b Using equation find a secondbest solution. What is the optimal set of plants to open?
Select your answer
What is the increase in cost versus the best solution from part a
$
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