Question: Management executives at both TelecomOne and High Optic have decided to merge the two companies into a single entity to be called TelecomOptic. Management believes

Management executives at both TelecomOne and HighManagement executives at both TelecomOne and High

Management executives at both TelecomOne and High Optic have decided to merge the two companies into a single entity to be called TelecomOptic. Management believes that significant benefits will result if the two networks are merged appropriately. TelecomOptic will have five factories from which to serve six markets. Management is debating whether all five factories are needed. It has assigned a supply chain team to study the network for the combined company and identify the plants that could be shut down and also consider single sourcing option for their supply chain network design. Companies may impose this constraint because it lowers the complexity of coordinating the network and requires less flexibility from each facility. In order to find an appropriate feasible solution for single sourcing network design it is needed to modify plant location model discussed in previous section in this course. Therefore the decision variables and constraints are required to be changed as follows: Yi = 1 if factory is located at site i, 0 otherwise Xij = 1 if market j is supplied by factory i, otherwise And the target cost function is modified like; Min D i=1 j=1 Where; n n m n i=1 m Xxv = 1 for j = 1, ..., Dixi; S Kiyi for i = 1,..., 1 Xij, yi{0,1} Cost, demand and capacity information for Telecom Optics is given in table below. Source Cities Demand City Production and transportation Cost per Thousands Units (Thousands $) Boston Chicago Denver Omaha 400 685 1630 1160 Capacity of Facility Thousands Units Fixed Cost Thousands Atlanta Portland 1675 2800 18 7650 1460 1940 970 100 495 1200 24 3500 1925 2400 1425 500 950 800 27 5000 Baltimore Cheyenne Salt lake City Memphis Wichita Monthly demand (thousands units), D 380 1355 543 1045 665 2321 22 4100 922 1646 700 508 311 1797 31 2200 10 8 14 6 7 11 Please find a feasible solution for Single source network design for Telecom Optics, and answer the following questions. You may use excel solver for this problem and upload your excel worksheets (.xlsx formatted files) to Moodle. IMPORTANT!! (NEED EXCEL FILE)

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