2. An industrial company is planning to build plants in three cities: Boston, Sa

Question

2. An industrial company is planning to build plants in three cities: Boston, San Francisco and Tennessee. The company needs to produce at least 40,000 units each year to satisfy the demand. Each plant has a certain capacity and there is an annual fixed cost to set up the plants and a variable cost per each unit produced. The following table provides the costs associated with each location. Location Boston San Francisco Tennessee Annual Fixed Cost $350,000 $375,000 $250,000 Variable Cost $20 $23 $21 Annual Capacity 20,000 22,000 25,000 The company is willing to determine the best location(s) to build the plant(s). The goal is to minimize the total cost (i.e., annual fixed cost and variable cost) (i)Formulate this problem. Determine the decision variables, the objective function, and the constraints

Explanation / Answer

X,Y,Z,A>=0

Objective Function X+Y+Z >=40000 Decision Variables A Constraints 20A+350000 >=20000 23A+375000>=22000 21A+250000>=25000

X,Y,Z,A>=0

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.