- Ransen Conrois Has Been Awarded A Contract For A Large Number Of Control Pancis 10 Meet This Demand It Will Use Its Ex 1 (52.09 KiB) Viewed 22 times
- Ransen Conrois Has Been Awarded A Contract For A Large Number Of Control Pancis 10 Meet This Demand It Will Use Its Ex 2 (46.24 KiB) Viewed 22 times
Answer the next two questions based on the case given below: Hansen Controls has been awarded a contract for a large number of control panels. To meet this demand, it will use its existing plants in Houston and Tulsa, and consider new plants in Santa Fe, Detroit, and Portland. Finished control panels are to be shipped to Seattle, Denver, and Kansas City. Pertinent information is given in the table. Sources 1- Tulsa 2- Houston 3- Santa Fe 4- Detroit 5- Portland Construction Cost 200,000 300,000 400,000 Demand False Shipping Cost to Destination: Kansas City 3 5 Seattle 1 10 8 6 12 3 30,000 Denver 2 6 7 7 5 8 20,000 We can't know without solving the problem. O True 6 8 10 10,000 We develop a transportation model as an LP that includes provisions for the fixed costs (construction costs in this case) for the three new plants. The solution of this model would reveal which plants to build and the optimal shipping schedule to minimize construction plus shipping costs. Let X = the number of panels shipped from source i to destination j Yi=1 if plant i is built, = 0 otherwise (i= 3, 4, 5) Capacity 15,000 25,000 8,000 10,000 14,000 The optimal objective function value would not exceed $1,200,000.