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 Houston and Tulsa, and consider new plants in Portland, St. Louis and Lexington. Finished control panels are to be shipped to Denver, Kansas City and Seattle. Pertinent information is given in the table.
|
Sources |
Construction Cost | Shipping Cost to Destination: |
Capacity | ||
|
Denver 1 |
Kansas City 2 | Seattle 3 | |||
| 1- Houston | ---- | 6 | 8 | 7 | 14,000 |
| 2- Tulsa | ---- | 9 | 5 | 13 | 13,000 |
| 3- Portland | 500,000 | 11 | 8 | 5 | 13,000 |
| 4- St. Louis | 450,000 | 8 | 3 | 10 | 10,000 |
| 5- Lexington | 400,000 | 10 | 6 | 14 | 8,000 |
| Demand | 11,000 | 10,000 | 15,000 | ||
We develop a transportation model as an LP that includes provisions for the fixed costs (construction costs in this case) for the three new plants. The solution of this model would reveal which plants to build and the optimal shipping schedule.
| Let | xij = the number of panels shipped from source i to destination j |
| yi = 1 if plant i is built, = 0 otherwise (i = 3, 4, 5) |
Suppose that Hansen has a budget crisis and is not able to construct any additional plants. Then, using only the Houston and Tulsa facilities, which destination has ALL of its demand requirement satisfied if Hansen applies the Greedy Heuristic discussed in class?
Group of answer choices
Denver
Both Denver and Seattle.
Kansas City
Both Denver and Kansas City
None of the others.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
