Question: Hansen Controls has been awarded a contract for a large number of control panels. To meet this demand, it will use its existing plants in
Hansen Controls has been awarded a contract for a large number of control panels. To meet this demand, it will use its existing plants in San Diego and Houston, and consider building new plants in Tulsa, St. Louis, and Portland. Finished control panels are to be shipped to Seattle, Denver, and Kansas City. Pertinent information regarding (i) construction costs, (ii) supply capacity, (iii) demand requirements, and (iv) shipping cost per unit are given in the following table: ( see attached)

a.) Define appropriate variables and develop an objective function which minimizes the sum of construction cost and shipping cost.
b.) Formulate a supply constraint for the existing source location at San Diego.
c.) Formulate a supply constraint for the proposed source location at Portland.
d.) Formulate a demand constraint for the destination location Denver.
e.) The optimal transportation schedule (number of units shipped from each source to each destination) is shown below.

i) Determine the missing shipment quantities (empty cells) in the optimal transportation schedule.
ii) What is the total construction cost incurred by Hansen Controls?
iii) What is the total shipping cost incurred by Hansen Controls?
f) In the optimal solution, do any of the source locations have unused capacity? If so, how much?
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