Question: ONLY SOLVE USING IBM CPLEX SOFTWARE, DO NOT SOLVE WITH EXCEL OR BY HAND! ANSWER : $2082.30 Frijo-Lane Food Products own farms in the Southwest
ONLY SOLVE USING IBM CPLEX SOFTWARE, DO NOT SOLVE WITH EXCEL OR BY HAND!
ANSWER : $2082.30

Frijo-Lane Food Products own farms in the Southwest and Midwest, where it grows and harvests potatoes. It then ships the potatoes to three processing plants A, B, and C, where different varieties of potato products, including chips, are produced. Recently, the company has experienced a growth in its product demand, so it wants to buy one or more new farms to produce more potato products. The company is considering six new farms with the following annual fixed costs and projected harvest: Farm Fixed Annual Costs ($1,000s) Projected Annual Harvest (thousands of tons) 1 $405 11.2 2 390 10.5 3 450 12.8 4 9.3 368 520 5 10.8 6 465 9.6 The company currently has the following additional available production capacity (tons) at its three plants, which it wants to utilize: Plant Avallable Capacity (thousands of tons) A 12 B 10 C 14 The shipping costs (5) per ton from the farms being considered for purchase to the plants are as follows: Plant (Shipping costs, S/ton) Farm A B 1 18 15 12 2 13 10 17 16 14 18 4 19 15 16 5 17 19 12 6 14 16 12 The company wants to know which of the six farms it should purchase to meet available production capacity at the minimum total costs, including annual fixed costs and shipping costs. Frijo-Lane Food Products own farms in the Southwest and Midwest, where it grows and harvests potatoes. It then ships the potatoes to three processing plants A, B, and C, where different varieties of potato products, including chips, are produced. Recently, the company has experienced a growth in its product demand, so it wants to buy one or more new farms to produce more potato products. The company is considering six new farms with the following annual fixed costs and projected harvest: Farm Fixed Annual Costs ($1,000s) Projected Annual Harvest (thousands of tons) 1 $405 11.2 2 390 10.5 3 450 12.8 4 9.3 368 520 5 10.8 6 465 9.6 The company currently has the following additional available production capacity (tons) at its three plants, which it wants to utilize: Plant Avallable Capacity (thousands of tons) A 12 B 10 C 14 The shipping costs (5) per ton from the farms being considered for purchase to the plants are as follows: Plant (Shipping costs, S/ton) Farm A B 1 18 15 12 2 13 10 17 16 14 18 4 19 15 16 5 17 19 12 6 14 16 12 The company wants to know which of the six farms it should purchase to meet available production capacity at the minimum total costs, including annual fixed costs and shipping costs