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Refer to the GlobChem example discussed in class. In the original problem setup, it is assumed that each of the four plants has an annual fixed cost which is incurred regardless of the production volume. Since GlobChem's total demand is only about 78% of its worldwide capacity, senior management wants to explore the possibility of downsizing capacity. Shutting down a plant will save the annual fixed operating expenses of the plant (which are incurred in full if the plant is open, regardless of the production volume). Plant Newark Los Angeles Rotterdam Kuala Lumpur Annual Fixed Cost (5000) If Open 1.800 2.750 2.100 1,950 Question: The Company needs to determine which plants they should continue to operate and subsequently decide the annual production and transportation schedule to maximize their net annual profit (with all costs considered), ensuring that plant capacity and market demand limits are not exceeded. Formulate and solve an LP model. Please define your decision variables, objective function and constraints and label your constraints clearly. You need to show your work in problem formulation, and its implementation in Excel. chem_lp.xlsx GlobChem Production and Transportation Problem Base Case: Production and Transportation Linear Program Unit Selling Prices, Production Costs, and Transportation Costs ($/ton) Newark So Paulo Rotterdam Selling Price ($/ton) 55,500 61,100 57,800 Newark 0 12,225 9,075 Los Angeles 4,500 16,500 13,350 Rotterdam 9,150 12,600 0 Kuala Lumpur 21,450 18,450 15,150 Tokyo 62,650 21,450 17,850 12,525 5,925 Unit Cost ($/ton) 34,900 32,200 38,350 23,400 Annual Fixed Cost ($000) 1,800 2,750 2,100 1,950