Klein Chemicals, Inc., produces a special oil-based material that is currently in short supply. Four of Klein's customer

[answerhappygod]

Klein Chemicals Inc Produces A Special Oil Based Material That Is Currently In Short Supply Four Of Klein S Customer 1 (140.35 KiB) Viewed 58 times

Klein Chemicals, Inc., produces a special oil-based material that is currently in short supply. Four of Klein's customers have already placed orders that together exceed the combined capacity of Klein's two plants. Klein's management faces the problem of deciding how many units it should supply to each customer. Because the four customers are in different industries, different prices can be charged because of the various industry pricing structures. However, slightly different production costs at the two plants and varying transportation costs between the plants and customers make a "sell to the highest bidder" strategy unacceptable. After considering price, production costs, and transportation costs, Klein established the following profit per unit for each plant-customer alternative. Plant Clifton Springs Danville Plant Clifton Springs Danville 1 12 Danville-D₁ Danville-D₂ Danville-D3 Danville-D4 Total Cost The plant capacities and customer orders are as follows. Clifton Springs-D₁ |0 Clifton Springs-D₂ Clifton Springs-D3 Clifton Springs-D4 D₁ 0 $32 Capacity (units) 4000 0 1 $34 $30 $28 1000 0 2000 Customer 5 D3 1000 $34 $32 5,000 3,000 (a) How many units should each plant produce for each customer to maximize profits? Optimal Solution Units ✔ ✓ ✔ 3 ✓ $0 4 D4 $ 32 $0 $40 $38 $ 136000 $0 $ 4000 $ 6800 $ 38000 Distributor Orders (units) D₁ D₂ D3 D4 Cost $ 282000 ✓ ✔ X x X 2,000 X 5,000 3,000 2,000
(b) Which customer demands will not be met? Distributor 1 will have a shortfall of Distributor 2 will have a shortfall of Distributor 3 will have a shortfall of Distributor 4 will have a shortfall of (1) (c) Show your network model and linear programming formulation. This answer has not been graded yet. Max network model (Submit a file with a maximum size of 1 MB.) Choose File No file chosen network model.JPG s.t. Xij (ii) linear programming formulation Let X;;= number of units i shipped to client j, using the indices from the given table. (It may be necessary to combine plants or distributors in a single node in order to solve this problem. Use index number 5 for this type of node. Enter "DNE" in any unused answer blanks.) Orders from Clifton Springs Orders from Danville Orders from/for Dummy Node Orders for D₁ Orders for D₂ units. Orders for D₂ units. Orders for D4 units. > 0 for all i, j. units.