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Whirlpool Inc. anticipates refrigerator demands for the following regions: South : 180,000 Midwest : 120,000 East : 110,000 West : 100,000 Logistics Directors are designing

Whirlpool Inc. anticipates refrigerator demands for the following regions:

South: 180,000

Midwest: 120,000

East: 110,000

West: 100,000

Logistics Directors are designing the manufacturing network and they have selected four potential plant locations: NY, ATL, CHI, and SD. These potential plant sites could have capacities of either 200,000 or 400,000.

The fixed costs, and the cost of manufacturing and transporting a refrigerator is listed in the table below.

Using excel and solver, develop a linear programming model that answers the following questions:

1. Where should Whirlpool Inc. build its plant facilities?
2. How large in terms of capacity should each facility be?
3. What is the total cost for the optimal solution?

image text in transcribed
\begin{tabular}{lllll} & New York & Atlanta & Chicago & San Diego \\ \hline \begin{tabular}{l} Annual fixed cost of \\ 200,000 plant \end{tabular} & $6 million & $5.5 million & $5.6 million & $6.1 million \\ \hline \begin{tabular}{l} Annual fixed cost of \\ 400,000 plant \end{tabular} & $10 million & $9.2 million & $9.3 million & $10.2 million \\ \hline East & $211 & $232 & $238 & $299 \\ \hline South & $232 & $212 & $230 & $280 \\ \hline Midwest & $240 & $230 & $215 & $270 \\ \hline West & $300 & $280 & $270 & $225 \\ \hline \end{tabular}

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