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whirlpool Inc., is a manufacturer of refrigerators that has seen its demand grow significantly. The company anticipates nationwide demand for the next year to be

whirlpool Inc., is a manufacturer of refrigerators that has seen its demand grow significantly. The company anticipates nationwide demand for the next year to be 180,000 units in the South, 120,000 units in the Midwest, 110,000 units in the East, and 100,000 units in the West. Managers at whirlpool are designing the manufacturing network and have selected four potential sites-New York, Atlanta, Chicago, and San Diego Plants could have a capacity of either 200,000 or 400,000 units. The annual fixed costs at the four locations are shown in Table 5-6, along with the cost of producing and shipping a refrigerator to each of the four markets. TABLE 5-6 Production and Transport Costs for whirlpool, Inc. New York Atlanta Chicago San diego Annual fixed cost $6 million $5.5 million $5.6 million $6.1 million of 200,000 plant Annual fixed cost $10 million $9.2 million $9.3 million $10.2 million of 400,000 plant Annual fixed cost East $211 $232 $238 $299 South $232 $212 $230 $280 Midwest $240 $230 $215 $270 West $300 $280 $270 $225
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?

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