Question: 1. (30 points - Suggested statement reading time = 10 min). This problem requires the use of Excel's Solver. During the Gulf War in 1991,

1. (30 points - Suggested statement reading time
1. (30 points - Suggested statement reading time = 10 min). This problem requires the use of Excel's Solver. During the Gulf War in 1991, the Terraco Motor Company produced an all-terrain vehicle for the US military. The company is now planning to sell a modified version of the vehicle to the public. It has 4 potential plants that can manufacture the vehicle and 3 regional distribution centers. The company is unsure of public demand for the vehicle, so it needs to decide on which plant(s) to open. When a plant is opened a fixed cost needs to be paid independently of how many vehicles are produced at the plant. There are also variable unit transportation costs between the plants and the distribution centers. All the demand at the distribution centers needs to be satisfied. Finally, the plants do not have any storage space, so all the vehicles produced need to be sent to the distribution centers. The table below summarizes the problem's data. Plant/Distribution Center Unit Shipping Costs (USD) Capacity Fixed Cost (USD) 1 2 3 528 206 323 214104 2 181 462 71 188 83892 3 767 417 146 181231 308 511 112480 Demand 62 145 107 (a) (5 points - Suggested completion time - 3 min) Express the problem's decision vari- ables. (b) (5 points - Suggested completion time = 2 min) Express the problem's objective. (C) (12 points - Suggested completion time = 5 min) Express the problem's constraints. (d) (6 points - Suggested completion time = 15 min) Solve the formulation using Excel's solver and report the optimal total cost obtained. (Note: You need to submit your Excel sheet with your answer!) (e) (2 points - Suggested completion time = 1 min) Indicate which plants are open in your optimal solution. 121 122 244 110

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