Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Martin-Beck Company operates a plant in ST. Louis with an annual capacity of 30,000 units. Product is shipped to regional distribution centers located in

image text in transcribed
The Martin-Beck Company operates a plant in ST. Louis with an annual capacity of 30,000 units. Product is shipped to regional distribution centers located in Boston, Atlanta, and Houston, Because of an anticipated increase in demand, Martin-Beck 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 $175,000 10,COO Toledo $300,000 20,000 Denver $375,000 30.000 Kansas City $500,000 40.000 The company's long-range planning group developed forecasts of the anticipated annual demand at the distribution centers as follows Distribution Center Annual Demand Boston 30,000 Atlanta 20,000 Houston 20,000 The shipping cost per unit from each plant to each distribution center is as follows: Distribution Centers Plant Site Boston Atlanta Houston Detroit Toledo Denver Kansas City 10 N St. Louis (a) Develop a mixed-integer programming model that could be used to help Martin- Beck 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? $ 20000 What is the optimal set of plants to open? Kansas City (b) Using equation 12.1, find a second-best solution. What is the optimal set of plants to open? Detroit & Denver What is the increase in cost versus the best solution from part (a)? 30000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finite Mathematics

Authors: Stefan Waner, Steven Costenoble

7th Edition

133751554X, 9781337515542

More Books

Students also viewed these Mathematics questions