Question: 2 ( Coverage: Module 6 , 7 , 8 , 9 , 1 0 ) Plant SiteDetroit Toledo DenverKansas CitySt. LouisDistribution CentersBostonAtlantaHouston 5 2 3

2(Coverage: Module 6,7,8,9,10)Plant SiteDetroit Toledo DenverKansas CitySt. LouisDistribution CentersBostonAtlantaHouston52310B323estimated to be $337,785 an Management wants to run a model that allows for any plant or set of plants to be open so that total cost es miremized. The variable costs for the propsend plant Following: Detroit ($4.21), Toledo ($4.32), Denver ($3.11), and Kansas City ($2.87). The fixed and variable costs for St. LoumThe optimal solution is to keep St. Louis and add Toledo and Kansas City with a total annual cost of $1,532,035,Find the second-best solution. Use equation 15.1. If required, round your answer to the nearest dollar.The second-birst solution has open Toledo, Denver, and St. Louiswith a total annual cost ofHow does it compare to the optimal solution? If required, round your answer to the nearest whole numberThe total annual cost of this second-best solution exceeds the total annual cost of the optimal solution by aboutWhy might the second best solution be preferred?(1) With less plants from the second best solution, the effect of a catastrophic event or a labor dispute at these plants wolld be slightly mitigated in compan(ii) With more plants from the second-best solution, the effect of a catastrophic event or a labor dispute at these plants would be slightly mitigated in compu(iii) With the same number of plants from the second-best solution, there is less probability of a catastrophic event or a labor dispute at these plant sites inOption (ii)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!