Question: Arnoff Enterprises manufactures the central processing unit (CPU) for a line of personal computers. The CPUs are manufactured in Seattle, Columbus, and New York and

Arnoff Enterprises manufactures the central

Arnoff Enterprises manufactures the central processing unit (CPU) for a line of personal computers. The CPUs are manufactured in Seattle, Columbus, and New York and shipped to warehouses in Pittsburgh, Mobile, Denver, Los Angeles, and Washington, DC for further distribution. The data below show the number of CPUs available at each plant and the number of CPUs required by each warehouse (these data are available in the Excel worksheet Group Discussion #4 - Dataset x/sx). The shipping costs (dollars per unit) are also shown. Plant Seattle Columbus New York Demand Pittsburgh Mobile $10 $20 $2 $10 $1 $20 3000 5000 Warehouse Denver Los Angeles Los Angeles Washington Supply $5 $9 $10 9,000 $8 $30 $6 4,000 $7 $10 $4 8,000 4000 6000 3000 Data Set: Arnoff Enterprises Data Seattle Columbus New York Demand Pittsburgh $10.00 $2.00 $1.00 3000 Mobile $20.00 $10.00 $20.00 5000 Denver Los Angeles Washington $5.00 $9.00 $10.00 $8.00 $30.00 $6.00 $7.00 $10.00 $4.00 4000 6000 3000 Supply 9000 4000 8000 Model Pittsburgh Mobile Denver Los Angeles Washington Seattle Columbus New York Decision variables Seattle Columbus New York Supply Constrains Amount Shipped From Pittsburgh Mobile Denver Los Angeles Washington Demand Constraints Amount Shipped To Total cost Arnoff Enterprises would like to find an optimal solution to determine the number of CPUs that should be shipped from each plant to each warehouse to minimize the total transportation cost. Use the techniques explained in Supplement E: Modeling the Transportation Problem to address the following: 4. The Pittsburgh warehouse has just increased its order by 1,000 units, and Arnoff has authorized the Columbus plant to increase its production by 1,000 units. Do you expect this development to lead to an increase or a decrease in the total transportation cost? Solve for the new optimal solution and provide the screenshot of Excel Solver's results to support your statement

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