Question: linear programming One lobster company is making production planning on whether to open new lobster plants in three locations A, B and C. If plant

linear programming One lobster company is making

linear programming

One lobster company is making production planning on whether to open new lobster plants in three locations A, B and C. If plant A is opened a fixed cost of 5000 is incurred per year, if plant B is opened, a fixed cost of 6000 is incurred per year and if the plant C is opened, a fixed cost of 5500 is incurred per year. Currently, the company needs to supply 5 different markets. The production and transportation cost of one pound of lobster from a plant to a market is given in the following table. The annual demand of market 1 is 10000 pounds, market 2 is 8000 pounds, market 3 is 15000 pounds, market 4 is 12000 pounds and market 5 is 13000 pounds. The capacity of plant A is 40000 pounds per year, plant B is 50000 pounds per year and plant C is 70000 pounds per year. Use Excel Solver to develop a linear programming model to minimize the total cost of the lobster company while satisfying all the demand in each market and determine which plant should be opened. Answer the following questions maket 1 maket 2 maket 3 maket 4 maket 5 A 10 13 13 17 15 B 18 10 9 14 12 8 22 15 10 11 o D

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