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

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. Shipping Cost to Destination: 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=1ifplantiisbuilt,=0otherwise(i=3,4,5) What is the minimum construction budget needed to make sure this problem has a feasible solution? 950,000450,000400,000500,000850,000

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