Question
To be done with Excel Solver Gator Electric Co. manufactures generators for homeowners. The companys most popular model is GEC1. Gator Electric Co. manufactures these
- To be done with Excel Solver
Gator Electric Co. manufactures generators for homeowners. The companys most popular model is GEC1. Gator Electric Co. manufactures these generators at their manufacturing plants located in Fort Lauderdale, Gainesville, Charlotte and Richmond and sells them through their six stores all of which are located in the Eastern United States. Table 3 gives the unit cost of manufacturing and shipping for each plant-store combination along with the capacity available at each plant and the demand at each store location. In addition, the company charges a different price for GEC1 at different store locations. These prices are also included in Table 3.
Table 3. Gator Electric Co. Cost, Price, Capacity and Demand Data
| Store 1 | Store 2 | Store 3 | Store 4 | Store 5 | Store 6 | Supply at plant |
Ft. Lauderdale Plant | 320 | 350 | 280 | 290 | 280 | 320 | 190 |
Gainesville Plant | 350 | 330 | 300 | 300 | 310 | 330 | 250 |
Charlotte Plant | 290 | 290 | 320 | 310 | 330 | 290 | 200 |
Richmond Plant | 280 | 290 | 300 | 300 | 290 | 340 | 200 |
Demand at store | 150 | 200 | 80 | 40 | 120 | 160 |
|
Price at Store($) | 450 | 500 | 400 | 380 | 430 | 480 |
- Find a profit-maximizing distribution plan for Gator Electric Co.
- Assume that the Gainesville plant has to manufacture at least 200 units in accordance with a labor agreement. Will this change the optimal solution you found in (a) above? If so, what is the new optimal solution?
- Now go back to the original problem, i.e. ignore the condition described in (b) above. If Charlotte plant had only 100 units of supply, how would the solution you obtained in (a) will change?
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