Answer the next two questions based on the case given below:

Hansen Controls has been awarded a contract for a large mumber 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 to be shipped to Seattle, Denver,

and Kansas City. Pertinent information is given in the table.

We develop a transportation model as an LP 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 $x_{ij}=$ the number of panels shipped from source $i$ to destination $j$

$y_{\text{I}}=1$ if plant $i_{?}$ is built, $=0$ otherwise $(i=3,4,5)$

The optimal objective function value would not exceed $$1,200,000.$

We can't know without solving the problem.

False

True