FlexSteal, marketed as a miracle brush-on sealant and baldness cure, is manufactured at three plants that are
Question:
FlexSteal, marketed as a miracle brush-on sealant and baldness cure, is manufactured at three plants that are struggling to keep up with the demand at the four regional centers. The cost to ship a truckload from each of the existing plants to the regional centers is shown in the table.
Philadelphia | atlanta | dallas | LA | capacity | |
plant 1 | 89 | 75 | 93 | 115 | 400 |
plant 2 | 120 | 88 | 103 | 93 | 400 |
plant 3 | 95 | 82 | 112 | 98 | 400 |
total demand | 350 | 350 | 350 | 350 |
The supply chain manager has explored plant construction costs in two other cities as well as the cost to ship a truckload from each of the plants to the regional centers. The current plan is to build another plant with a capacity of 400 to allow room for sales growth. The construction cost for the new plants and cost to ship to each of the regional centers is shown here
Philadelphia | atlanta | dallas | LA | cost to build | |
plantA | 94 | 78 | 95 | 95 | 23500 |
Plant B | 95 | 88 | 88 | 94 | 26000 |
FlexSteal wants to use LP to decide its supply chain network and which plant they should add in order to minimize the total cost.
a) Define the decision Variables
b) Determine the objective function
c) Determine the constraints
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson