Question: Answer the question at the very bottom please. BestChip (BC) is a large nationwide corporation that produces low-fat snack products for an expanding market (pun

Answer the question at the very bottom please.

BestChip (BC) is a large nationwide corporation that produces low-fat snack products for an expanding market (pun intended). Basically, BC takes materials (corn, wheat, and potatoes) and turns them into two types of snacks: chips (regular and green onion) and party mix (one variety). BC is expanding into western United States and is considering sites for locating production facilities. BC currently has eight candidate sites. Table 1 shows the sites purchase prices and the purchase and shipping cost per ton of each material to each site. The purchase cost represents the yearly amortized cost of opening and operating the site (exclusive of shipping costs). Each site may produce as many as 20,000 tons of products per year. BC has six major customers, and all demand is shipped by truck from the plant to the customer warehouse. The shipping cost depends on the tonnage and distance and comes to $0.15 per ton-mile. The customers, their location, and their yearly demand in tons for each product are listed in Table 2. You must meet demand. The makeup of the produces does not depend on the production plant. Table 3 gives the product ingredient mix data. The company requires that we consolidate our business, so we cannot locate plants in more than two states. For this analysis, ignore the differences in property and income tax rates between the states (this is usually critical, but is gets us far afield of the key issue of math programming). In addition, many critical factors actually determine locations; for example, the method of financing the site purchase will also be a major factor in the decision- but we will ignore that also.

Answer the question at the very bottom please. BestChip (BC) is a

This is the answer

large nationwide corporation that produces low-fat snack products for an expanding market

(pun intended). Basically, BC takes materials (corn, wheat, and potatoes) and turns

them into two types of snacks: chips (regular and green onion) and

****My question is why did they decided to use the formula Xi - M *Yi for the binary? Where did they get the 9999999 value from and how is that interpreted in the constraints?

Please do not copy paste from previous answers

Table 1 Site Information and Material shipping Cost Site Location Yuma, AZ Fresno, CA Tucson, AZ Pomona, CA Santa Fe, NM Flagstaff, AZ Las Vegas, NV St. George, UT Purchase Cost($/Year) 125,000 130,000 140,000 160,000 150,000 170,000 155,000 115,000 Material Shipping Cost($/Ton) Corn Wheat Potato 10 5 16 12 8 11 9 10 15 11 7 14 8 14 10 10 12 11 13 12 9 14 15 8 Table 2 Demand Information Demand Green Onion Company Party Mix Jones YZCO Square Q AJ Stores Sun Quest Harm's Path Location Regular Salt Lake City 1,300 Albuquerque 1,400 Phoenix 1,200 San Diego 1,900 Los Angeles 1,900 Tucson 1,500 900 1,100 800 1,200 1,400 1,000 1,700 1,700 1,800 2,200 2,300 1,400 Table 3 Product-Ingredient Mix Product Regular Chips Green Onion Chips Party Mix Corn 70 30 20 Ingredient Wheat 20 15 50 Potato 10 55 30 B D E E F G H 1 J K L M N o P Q R s T P G 0 10 Jones R G 0 0 0 0 0 lo 0 0 0 lo 0 lo 0 0 1300 900 0 10 10 lo YZCO R 0 0 1400 0 0 10 Jo 0 0 0 lo 10 10 lo lo 0 P P 10 0 0 0 0 10 0 10 0 0 10 10 Square R G JO 0 o 0 0 1200 800 10 0 0 10 lo 0 0 0 10 0 lo lo 1800 10 lo 10 lo 10 Store: R G lo 10 0 0 0 0 1900 1200 0 0 0 lo 0 To 0 JO P 0 0 0 0 2200 0 0 10 lo un Ques R lo 0 0 0 JO lo 1900 1400 0 0 JO lo lo 0 0 0 P Jo 0 10 2300 0 Jo 0 To 0 arm's Pa R G Jo 0 lo 0 1500 1000 lo 0 0 0 0 10 0 jo jo 10 0 0 jo 1400 Jo Jo 0 jo 0 0 Xi =SUMB35.535) 20000 =SUMB36.536) 20000 =SUM(B37-S37) 20000 =SUM(B38-S38) 20000 =SUM(B39-539) 20000 -SUMB40:540) 20000 -SUMB41:541) 20000 |-SUM(B42:542) 20000 0 1700 32 Tonnes transported matrix (Xij's) 33 34 35 Yuma 36 Fresco 37 Tucson 38 Pomona 39 Santa Fe 40 Flagstaff 41 Las Vegas 42 St. George 43 44 Binary selection (Y) 45 46 Yuma 47 Fresco 48 Tucson 49 Pomona 50 Santa Fe 51 Flagstaff 52 Las Vegas 53 St. George 54 Total fixed cost Yi Fi Xi-MYi 0 125000 =T35-99999999*846 0 130000 =T36-99999999*847 1 140000 =T37-99999999-B48 1 160000 =T38-99999999*849 0 150000 -T39-99999999.B50 0 170000 -140-99999999*851 0 155000 =T41-99999999*852 1 115000 =T42-99999999*853 =SUMPRODUCT(B46:B53,C46:C53) Y 2 XXTM q 14:521,c28:135]*0.15 3:B10,614 021 $1,186,175 91 Tuning- 2 $ 4 & al 1 US ..8 1. 1 - Tolelle.lel.. call. olell alalalala 2 9*0.55+Z29*0.3 Set Objective: STS7 2 To: Max Min O Value of: 0 By Changing Variable Cells: $B$14:$T$21 Subject to the Constraints: $B$14:5B521 = binary SCS22:ST$22 >= SCS24:$T$24 SUS14:SUS21 = SCS24:$T$24 SUS14:SUS21

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