Question
The Ultimate Company operates five plants in Cicero, IL, Oshkosh, WI, Omaha, NE, Terre Haute, IN, & St. Charles, MN. The company ships products from
The Ultimate Company operates five plants in Cicero, IL, Oshkosh, WI, Omaha, NE, Terre Haute, IN, & St. Charles, MN. The company ships products from it plants to its distribution centers (DCs) in Lincoln, NE and Atlanta, GA. You are given the data below regarding plant capacities, annual fixed costs for the five plants (incurred only if the plant ships greater than 0 units), shipping cost per unit, and demand at each DC. Formulate a model to determine which plants to use to minimize total cost.
|
|
| Shipping Cost/Unit to DC |
| |
|
Plant | Annual Fixed Cost |
Lincoln DC |
Atlanta DC | Plant Capacity |
| Cicero | $2,500,000 | $6 | $7 | 7,000 |
| Oshkosh | $1,600,000 | $8 | $9 | 5,000 |
| Omaha | $2,100,000 | $13 | $11 | 6,000 |
| Terre Haute | $1,500,000 | $7 | $5 | 8,000 |
| St. Charles | $900,000 | $5 | $14 | 6,150 |
| DC Demand = | 12,500 | 15,000 |
| |
Decision Variables:
Objective Function:
Constraints:
Additional Work for Constraints:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
College Accounting Chapters 1-12 With Study Guide And Working Papers
Authors: Jeffrey Slater
13th Edition
0133866300, 9780133866308
