D E F G . H 1 K L N o P Q R S Midwest West 232 240 212 230 230 215 280 270 180 120 300 280 270 225 100 Fixed Cost (S) 6,000 5,500 5,600 6,100 Low Capacity 200 200 200 200 Fixed Cost ($) 10,000 9,200 9,300 10,200 Highl Capacity 400 400 400 400 Question: Drylce, Inc., is a manufacturer of air conditioners that has seen its demand grow significantly. The company anticipates nationwide demand for the next year to be 180 units in the South, 120 units in the Midwest, 110 units in the East, and 100 units in the West. Managers at Dryice are designing the manufacturing network and have selected four potential sites-New York, Atlanta, Chicago, and San Diego. Plants could have a capacity of either 200 or 400 units. The annual fixed costs at the four locations are shown in the spreadsheet along with the cost of producing and shipping an air conditioner to each of the four markets. Where should Dryice build its factories and how large should they be? Sram Plants Large Plants Midwest West (1=open) (1=open) A B 1 DryIce Inc. Facilities Planning 2 3 Inputs - Costs, Capacities, Demands Production and Franco 4 Transportation Cost per 5 Supply Region East South 6 New York 211 7 Atlanta 232 8 Chicago 238 9 San Diego 299 10 Demand 110 11 12 Decision Variables Dom ROSI 13 Production 14 Supply Region East South 15 New York 16 Atlanta 17 Chicago 18 San Diego 19 20 20 Constraints 21 Supply Region Excess Capacity 22 New York 23 Atlanta 24 Chicago 25 San Diego 26 East South 27 Unmet Demand 28 29 Objective Function 30 Cost- 31 32 33 34 35 36 Midwest West