Question: Everything is provided please answer questions as asked. 3. Upon getting a new equipment, the R&D Division of the XYZ Company has plans to produce

Everything is provided please answer questions as asked.

Everything is provided please answer questions asEverything is provided please answer questions as

3. Upon getting a new equipment, the R&D Division of the XYZ Company has plans to produce a product 'P'. New equipment and unit production costs, and capacity in each plant are given below: Capacity 700 Plant 1 Cost of equipment Unit production cost $15,000 $55 $18,000 $52 $22,000 $50 Plant 2 800 Plant 3 1000 Once produced, the product will be sent to two distribution centers via two warehouses. Various costs like the shipping cost between plants and warehouses and between warehouses and distribution centers are given below: $17 Warehouse 1 Warehouse 2 Distr. Center 1 Distr. Center 2 Plant 1 $15 $18 Warehouse 1 $23 $28 Plant 2 $19 Warehouse 2 $27 $22 Plant 3 $18 $20 Following are the demands for product 'P': distribution center 1 - 700 units, distribution center 2 - 600 units. Please help the company to decide the production and replenishment plans (which of these three plants actually will produce and at what levels, along with the shipping quantities from plants to warehouses, and from warehouses to distribution center at minimum cost, while satisfying the demand and capacity restrictions). (15 points)

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