Question: ((((((((((((Please answer the whole Problem))))))))) include Part 1 and 2 Thanks Problem 2. Network Design ( 30 points) Blue Computers, a major PC manufacturer in

 ((((((((((((Please answer the whole Problem))))))))) include Part 1 and 2 Thanks

((((((((((((Please answer the whole Problem))))))))) include Part 1 and 2

Thanks

Problem 2. Network Design ( 30 points) Blue Computers, a major PC manufacturer in the United States, currently has a plant in Kentucky. The Kentucky plant has a capacity of 1 million units a year. The firm divides the United States into five markets: Northeast, Southeast, Midwest, South, and West. Each PC sells for $1,000. The firm wants to build a couple of plants, each plant with a capacity of 1.8 million units per year, to accommodate the growth. Potential sites being considered are Pennsylvania, North Carolina, and California. Annual fixed costs, production and shipping costs per unit, and the expected regional demand are shown in the following Table. 1) If Blue Computers sets an objective of minimizing the total cost, where should it build the new plant? How should the network be structured? To solve the problem a) Formulate the problem with mathematical models (MIP) b) Solve it with the Excel solver. 2) If each market has single source policy, i.e., only one manufacturer can supply PC to each market, what is your new model and solution? c) Formulate the problem with mathematical models (MIP) d) Solve it with the Excel solver

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