Question: ( a ) Why is the company considering opening at least one new plant? ( b ) How many shipment variables will the LP formulation

(a) Why is the company considering opening at least one new plant?
(b) How many shipment variables will the LP formulation have? (That is, how many Xij variables are
included in the formulation?)
(c) Why do we need to introduce binary variables YC, YD, YE and YF? Do we need a binary
variables YA and YB? Why?
(d) Formulate a linear programming model for minimizing total costs (shipping costs+fixed costs);
you should have a total of 9 constraints. You can use steps (i)-(iv) below as a guide for writing the LP
i. Use suitable variables to express the objective function (minimize shipping costs + fixed costs).
ii. Write the demand constraints for Distribution Centers 1,2 and 3.
iii. Write the supply constraints for plants A and B.
iv. Use suitable variables to write the supply constraints for plants C, D, E and F.
(e) Write a constraint to express a requirement that the company will open only one new plant
(f) If the company will open only one plant, which plant do you think it will be C, D, E or F? Why?
(g) Write a constraint to express a requirement that the company will either open both plants C and
D or neither of them (that is, if plant C opens then plant D has to open as well and if plant D is
open then Plant C has to open too)
Extra credit option I (4 points):
Use Excel solver to solve the linear program formulated in part (d): Which plants will open and what is the
shipping plan (i.e., how many units will be shipped from each plant to each distribution center?)
What is the associated costs of this plan?
Extra credit option II (2 points):
Use Excel solver to solve the linear program formulated in part (d) with the additional constraint you
determined in (e). Which plant will open and how many units will be shipped from each plant to each
distribution center? What is the associated costs of this plan?
 (a) Why is the company considering opening at least one new

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