Question: Each year, Data Corporal produces up to 5000 computers in Boston and up to 3500 computers in Charlotte. There are customers in Los Angeles, New

Each year, Data Corporal produces up to 5000 computers in Boston and up to 3500 computers in Charlotte. There are customers in Los Angeles, New York, and Seattle who must receive 2300, 3700, and 1300 computers, respectively. Producing a computer costs $250 in Boston and $275 in Charlotte. Computers are transported by plane and can be sent through Chicago. The costs of sending a computer between pairs of cities are shown in the file P05_58.xlsx.
a. Determine how to minimize the total (production plus shipping) cost of meeting Data Corporal's annual demand. Why doesn't it make sense to ship any computers through Chicago?
b. Modify the model so that no more than 1250 computers can be shipped between any two cities, and find the optimal solution to this modified model. Why are computers now shipped through Chicago?
.

Step by Step Solution

★★★★★

3.48 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Develop a spreadsheet optimization model that minimizes total cost of producing and shipping computers from 2 plants to 3 cities and meets the constraints Plant 1 in B can produce 5000 units at a cost ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1019-B-C-F-D-F(605).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

Sunco Oil produces oil at two wells. Well 1 can produce up to 150,000 barrels per day, and well 2 can produce up to 200,000 barrels per day. It is possible to ship oil directly from the wells to...

In Problem 55, assume that before being shipped to Los Angeles or New York, all oil produced at the wells must be refined at either Galveston or Mobile. To refine 1000 barrels of oil costs $5780 at...

Rework the previous problem under the assumption that Galveston has a refinery capacity of 150,000 barrels per day and Mobile has a refinery capacity of 180,000 barrels per day. Data from Previous...

Each year, Data Corporal produces up to 5 0 0 0 computers in Boston and up to 3 5 0 0 computersin Charlotte. There are customers in Los Angeles, New York, and Seattle how must receive 2 3 0 0 , 3 7 0...

PLEASE USE EXCEL WITH FORMULAS************** Problem 2 Each year, Data Corporal produces up to 5000 computers in Boston and up to 3500 computers in Charlotte. There are customers in Los Angeles, New...

Each year, Data Corporal produces up to 400 computers in Boston and up to 300 computers in Raleigh. Los Angeles customers must receive 400 computers, and 300 computers must be supplied to Austin...

Each year, Data Corporal produces up to 10,000 computers in Boston and up to 6,000 computers in Charlotte. There are customers in Los Angeles, New York, and Seattle who must receive 5,300, 6,700, and...

5 Homework Each year, Data Corporal produces up to 10,000 computers in Boston and up to 6,000 computers in Charlotte. There are customers in Los Angeles, New York, and Seattle who must receive...

Access the 2010 annual report of Waste Management by clicking on the Investor Relations, Financial Reporting, and Annual Reports links at www.wm.com. Required a. Review the company's statement of...

What are the three ethical principles that provide a framework to help distinguish between right and wrong? Explain.

The table below provides market prices for zero - coupon government bonds with different maturities. Assume annual compounding. ( a ) Compute one - , two - , three - , and four - year spot rates. ( b...

Suppose an increase in air pollution causes capital to wear out more rapidly, doubling the rate of depreciation. How would this affect economic growth? L987

The balance sheet of the ABC Partnership at December 31 of the current year is as follows: All partners have an equal interest in the partnership. Allen sells his partnership interest to an outsider...

Rita, a calendar year taxpayer, is an employee of the RST Partnership, which has a June 30 year-end. The partnership pays Rita a salary of $2,500 per month for the period January 1 through June 30,...

JLK Partnership is an electing large partnership with 100 partners. The partnership reports the following operating results from the current year: Ordinary...

In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $48,000 and the interest rate is 7.75%, the borrower "pays" .0775 times $48,000 = $3,720...

Test 2 (Chapter 3 and 4) 25 points possible 1/25 answered Question 6 Next

Given the following information: \ table [ [ Job , Arrival Time,CPU Cycle ] , [ A , 0 , 1 2 ] , [ B , 2 , 2 ] , [ C , 3 , 1 0 ] , [ D , 6 , 7 ] , [ E , 1 0 , 3 ] ] Calculate which jobs will have...