1. Describe the decision variables

2. Describe the logical objective

3. Describe the logical constraints

4. Develop the mathematical model

5. Solve the problem using the "Plant" worksheet and the Excel "Solver"

Plant Decision A company currently ships its product from 5 plants to 4 warehouses. It is considering closing one or more plants to reduce cost. What plant(s) should the company close, in order to minimize transportation and fixed costs? Transportation Costs (per 1000 products) Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 Demand Warehouse 1 $4,000 $2,000 $3,000 $2,500 $4,500 15 Warehouse 2 $2,500 $2,600 $3,400 $3,000 $4,000 18 Warehouse 3 $1,200 $1,800 $2,600 $4,100 $3,000 14 Warehouse 4 $2,200 $2,600 $3,100 $3,700 $3,200 20 Fixed Cost Capacity Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 $12,000 | $15,000 $17,000 | $13,000 $16,000 20 22 17 19 18