A B C D E F G H C K L DryIce Inc. Facilities Planning W N A Shipped Shipped Shipped Shipped from from San New York from NY Atlanta from Atlanta Chicago Chicago San Diego Diego Requirements Supply Fixed Costs 200k 8 400k 9 Variable Costs 10 East #VALUE! 11 South #VALUE! 12 Midwest #VALUE! 13 West #VALUE! 14 Small (200k) 15 Large (400k) 16 Capacity/Cost #VALUE! #VALUE! #VALUE! #VALUE! 17 18 TOTAL SYSTEM COST 19 20 Cells that are changed 21 All non-negative integersSolver Parameters X Set Objective: $K$ 19 + To: O Max O Min O Value Of: 0 By Changing Variable Cells: $D$10:$D$13,$F$10:$F$13,$H$10:$H$13,$1$10:$1$13,$D$14:$D$15,$F$14:$F$ 15,$H$ 14:$H$15,$1$14:$1$1! Subject to the Constraints: $F$ 10:$F$ 13 > = 0 Add $D$14:$D$15 = binary $F$ 14:$F$15 = binary $D$ 10:$D$13 > = 0 Change $H$ 10:$H$ 13 > = 0 $F$ 16 > = 0 Delete $D$ 16 > = 0 $H$14:$H$15 = binary $J$10:$1$13 > = 0 Reset All $H$16 > = 0 $J$14:$1$15 = binary Load/Save Make Unconstrained Variables Non-Negative Select a Solving Simplex LP Options Method: Solving Method Select the GRG Nonlinear engine for Solver Problems that are smooth nonlinear. Select the LP Simplex engine for linear Solver Problems, and select the Evolutionary engine for Solver problems that are non-smooth. Help Solve CloseExercise 5.2 Dryice, 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 DryIce 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 5-6, along with the cost of producing and shipping an air conditioner to each of the four markets. Where should Dryice build its factories and how large should they be? TABLE 5-6 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