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

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The Martin-Beck Company operates a plant in St. Louis with an annual capacty 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 foliowing cities: Detroit, Toledo, Denver, or Kansas City. The estimated annual fixed cost and the annual capacity for the fout proposed plants are as follows: Management wants to nun a model that alliows for any plant or set of plants to be open so that total cost is minimized. The variable custs for the proposed plant locations are 5337,765 and 54.18 , respectively. The optimal solution is to keep St, Lous and add Toledo and Kansas City with a total annual cost of 51,532,035. Find the secand-best solution. Use equation 15. I. If required, round your answer to the nearest dollar. The second-best whlutan has open [? with a total anmual cost of s? How does ie compare to the optimal wolutioh? if required, round your answer to the nearest whole numder. The total annual cost of this second-best walution the total aninat cost of the eptimal solution try about Whiy might the second best sclution be preferred? (d) With less plants frem the second-best solution, the eftect of a catastrophic event or a labor dispute at these plants would be shiphtly matigated in cortipanson to the optinal solution: eptiend sclution. the ophimal solivioni

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