Question: 1 . Write down the Linear Programming Model using the Summation Notation that would provide a concise description of the following components of the LP

1. Write down the Linear Programming Model using the Summation Notation that would provide a concise description of the following components of the LP Model: A. Objective Function B. Constraints C. Decision Variables D. Input Data Hint: You can use similar mathematical formulation to that used in the Capacitated Plant Location Model described on Page 114.2. Use the attached excel file as an aid to find the optimal distribution strategy that minimizes the cost of the supply chain network. 2. Drylce, Inc., is a manufacturer of air conditioners that has seen its demand grow significantly. The company anticipates nationwide demand for the next year to be 180,000 units in the South, 120,000 units in the Midwest, 110,000 units in the East, and 100,000 units in the West. Managers at Drylce are designing the manufacturing network and have selected four potential sites New York, Atlanta, Chicago, and San Diego. Plants could have a capacity of either 200,000 or 400,000 units. The annual fixed costs at the four locations are shown in Table 5-50, along with the cost of producing and shipping an air conditioner to each of the four markets. Where should Drylce build its factories and how large should they be? Table 5-5 Production and Transport Costs for Drylce, Inc. New York Atlanta Chicago San Diego Annual fixed cost of 200,000 plant $6 million $5.5 million $5.6 million $6.1 million Annual fixed cost of 400,000 plant $10 million $9.2 million $9.3 million $10.2 million East $211 $232 $238 $299 South $232 $212 $230 $280 Midwest $240 $230 $215 $270 West $300 $280 $270 $225 DryIce Inc. Facilities Planning from from San Shipped from NY Shipped from Atlanta Unmet Demand New York Atlanta Chicago Chicago San Diego Diego Requirements Fixed Costs 200k 400k 6,000,00010,000,0005,500,0009,200,0005,600,0009,300,0006,100,00010,200,000238299230 Variable Costs East South Midwest West Small (2002)(1=open) Large (400k)(1=open) Capacity/Cost 211232240300232212230280215110,000180,000120,000100,000280270225270 Binary Integer Variables Decision Variable Cells (Shipped Units) LHS of Demand Constraints LHS of Supply Constraints Objective Function (Compont 1, Component xcess Capacity TOTAL SYSTEM COST-Objective Function Cells that are changed All non-negative integers

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