Question: Answer the next two questions based o n the case given below: Hansen Controls has been awarded a contract for a large number o f

Answer the next two questions based on the case given below:
Hansen Controls has been awarded a contract for a large number of control panels. To meet
this demand, it will use its existing plants in Houston and Tulsa, and consider new plants in
Santa Fe, Detroit, and Portland. Finished control panels are tobe shipped to Seattle, Denver,
and Kansas City. Pertinent information is given in the table.
We develop a transportation model asanLP that includes provisions for the fixed costs
(construction costs in this case) for the three new plants. The solution of this model would
reveal which plants to build and the optimal shipping schedule to minimize construction plus
shipping costs.
Let ,xij= the number of panels shipped from source ito destination j
yi=1if plant iis built, =0i=3,4,5
Answer the next two questions based o n the case

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