{Not from the book] Chapter 5, Question 3:

Assume that the capacity of each plant has gone up by 10% and the demand of each market has gone up by 15%.

Furthemore, assume that the manufacturing plants are not bulit (facility location problem). The construction costs in US, Germany, Japan, Brazil, India are 2,000,000, 1,000,000, 1,500,000, 750,000, 1,000,000, respectively. Decide where to build the plants and how to perform the transportations.

Finally, The CEO has decided that only 1 out of the following 3 countries needs to be selected to build a manufacturing plant: Japan, Brazil, and India. There is no restriction on US and Germany. There is no restriction on the number of plants that can be built either.

Note. For the 3 countries, add a new constraint to the facility location problem stating the wish of the CEO. Then solve the model again. The model needs to include the constraint of part (a) that no plant can run below 50% of capacity

How does the total cost change in an optimal solution?

Group of answer choices

$11,435,110.00

$12,435,110.00

None of the above

$10,435,110.00