Intel Corporation has two factories that produce microprocessors for four different distribution centers located in four...

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Intel Corporation has two factories that produce microprocessors for four different distribution centers located in four different cities. The demand for the microprocessors for the four centers, San Francisco, New York, Chicago, and Los Angeles, are 5000, 4500, 6000, and 4000 units, respectively. The shipping details are as follows. Factory 1 has a production capacity of 8000 units. Factory 2 has a production capacity of 10,000 units. The transportation cost per unit from each factory to each center is as follows: Center San Factory Francisco $3 $5 F1 F2 New York Chicago $4 $2 $3.5 $6 Los Angeles $5 $4 a. Determine the optimum supply of microprocessors to each center from each factory, to minimize the total transportation cost. b. What would be the effect on the optimal solution and the optimal cost if the production capacity at Factory (F1) increases to 10,000 units? c. Suppose a new factory (F3) can be built that can supply all the demand for centers in New York and Los Angeles. The transportation cost from F3 to San Francisco is $4 per unit, from F3 to New York is $3 per unit, from F3 to Chicago is $5 per unit, and from F3 to Los Angeles is $3 per unit. Does building this new factory help with further minimizing the transportation costs? Explain. Note: Please make sure you reset all the parameters to their original values for this part. Intel Corporation has two factories that produce microprocessors for four different distribution centers located in four different cities. The demand for the microprocessors for the four centers, San Francisco, New York, Chicago, and Los Angeles, are 5000, 4500, 6000, and 4000 units, respectively. The shipping details are as follows. Factory 1 has a production capacity of 8000 units. Factory 2 has a production capacity of 10,000 units. The transportation cost per unit from each factory to each center is as follows: Center San Factory Francisco $3 $5 F1 F2 New York Chicago $4 $2 $3.5 $6 Los Angeles $5 $4 a. Determine the optimum supply of microprocessors to each center from each factory, to minimize the total transportation cost. b. What would be the effect on the optimal solution and the optimal cost if the production capacity at Factory (F1) increases to 10,000 units? c. Suppose a new factory (F3) can be built that can supply all the demand for centers in New York and Los Angeles. The transportation cost from F3 to San Francisco is $4 per unit, from F3 to New York is $3 per unit, from F3 to Chicago is $5 per unit, and from F3 to Los Angeles is $3 per unit. Does building this new factory help with further minimizing the transportation costs? Explain. Note: Please make sure you reset all the parameters to their original values for this part.

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To solve this problem we can use the transportation model specifically the transportation algorithm or the transportation simplex method Lets go throu... View the full answer