DATA Offhaus Because dealing with too many carriers can be cumbersome, Ofthaus would like to limit the number of carriers it uses to throw. Also, for customer relationship reasons, Offhaus wants each city to be assigned to only one carrier (that is, there is no splitting of the demand to a given city across carriers). a. Develop a model that will yield the three selected carriers and the city-carrier assign- ments that minimize the cost of shipping. Solve the model and report the solution. b. Offhaus is not sure whether three is the correct number of carriers to select. Run the model you developed in part (a) for allowable carriers varying from 1 up to 7. Based on your results, how many carriers would you recommend and why? 13. Recall the Martin-Beck Company distribution system problem in Section 7.3. a. Modify the formulation shown in Section 7.3 to account for the policy restriction that one plant, but not two, must be located either in Detroit or in Toledo. b. Modify the formulation shown in Section 7.3 to account for the policy restriction that no more than two plants can be located in Denver, Kansas City, and St. Louis. 14. An automobile manufacturer has five outdated plants: one each in Michigan, Ohio, and California and two in New York. Management is considering modernizing these plants to manufacture engine blocks and transmissions for a new model car. The cost to modernize each plant and the manufacturing capacity after modernization are as follows: SELFtest Cost Engine Blocks Plant ($ millions) (1000) Michigan 25 500 New York's 35 800 New York 35 400 Ohio 40 900 California 20 200 Transmissions (1000s). 300 1400 .. 800 600 300 Bid $/Truckload City I City 2 City 3 City 4 City 5 City 6 City 7 $2283 $1545 $2100 22. $1938 City 8 City 9 2 Carrier 1 Carrier 2 Carrier 3 Carrier 4 Carrier 5 Carrier 6 Carrier 7 Destination (Truckloads) Demand $2188 $1666 $1790 City 1 30 $1453 $2602 $1767 City 2 10 $1534 $1870 City 3 20 $1687 $2617 $ 1738 City 4 40 $1523 $2239 $1771 $1855 City 5 10 $1521 1571 City 6 10 S1922 S2050 City 7 12 $1800 $1432 $1416 $1739 City 8 25 $1134 $1233 $1181 $1150 25 $672 $610 $669 $678 City 1033 $724 $627 $657 $706 City 11 11 $766 $766 $721 $682 $733 City 12 29 $741 $682 $733 City 13 12 $815 $800 $828 $745 $832 City 14 24 $904 $880 $891 $914 City 15 10 $958 $933 $914 City 16 10 $925 $929 $937 $984 23 $892 $869 $822 $829 $864 City 18 25 $927 S967 $1008 City 19 12 $963 $938 $995 City 20 10 10 10 10 7 20 5 18. $723 City 9 City 10 21 City 11 City 12 City 13 City 14 City 15 City 16 City 17 City 18 $745 $891 City 17 City 19 $969 $955 City 20 Number of Bids