A company currently ships its product from five plants to four warehouses. Information tables are pictured. 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? You need to use Gurobi Python API to solve this problem in order to answer the following questions.

1. How many decision variables should be created for this problem?

2. Which plant should be closed?

3. What is the optimal cost?

4. In optimality, which plant will transport eight units to warehouse 4?

5. In optimality, how many plants will be used to satisfy the demand for warehouse 4?

 

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Warehouse Demand in Thousands of Units Warehouse 1 Warehouse 2 Warehouse 3 Warehouse 4 18 20 Demand 15 14 Plant Capacity in Thousands of Units Plant 1 Plant 2 Plants 3 Plant 4 Plant 5 22 17 19 18 Capacity 20 Fixed Costs for Each Plant Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 Fixed Cost 12,000 15,000 17,000 13,000 16,000 Transportation Costs per Thousand Units Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 Warehouse 1 4,000 2,000 3,000 2,500 4,500 Warehouse 2 2,500 2,600 3,400 3,000 4,000 Warehouse 3 1,200 1,800 2,600 4,100 3,000 Warehouse 4 2,200 2,600 3,100 3,700 3,200 Warehouse Demand in Thousands of Units Warehouse 1 Warehouse 2 Warehouse 3 Warehouse 4 18 20 Demand 15 14 Plant Capacity in Thousands of Units Plant 1 Plant 2 Plants 3 Plant 4 Plant 5 22 17 19 18 Capacity 20 Fixed Costs for Each Plant Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 Fixed Cost 12,000 15,000 17,000 13,000 16,000 Transportation Costs per Thousand Units Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 Warehouse 1 4,000 2,000 3,000 2,500 4,500 Warehouse 2 2,500 2,600 3,400 3,000 4,000 Warehouse 3 1,200 1,800 2,600 4,100 3,000 Warehouse 4 2,200 2,600 3,100 3,700 3,200

Answer rating: 100% (QA)

Let Xij be the number of products 000 sent from the ith plant to the jth warehouse i 1234 and j 12345 Also let Yi be the set of binary integers such t... View the full answer