Please attached excel solution with formulars.

An electronics manufacturer wants to expand its market in Europe. The demand in Europe is forecasted as:

England	France	Spain	Germany	Italy	Sweden
9	16	10	12	18	8

*in million units

Further analysis shows the variable costs (production, inventory and holding, transportation, tax, and tariffs) of meeting demand from a source to a market per 1,000,000 units:

	Demand Region
	Production and Transportation Cost per 1,000,000 units
Supply Region	England	France	Spain	Germany	Italy	Sweden
England	150	180	133	189	128	120
France	124	232	190	191	202	72
Spain	227	231	168	194	143	235
Germany	149	115	100	137	116	99
Italy	236	178	122	94	243	226
Sweden	248	73	70	226	246	116

*in thousands of dollars

The company considers two plant sizes in each location. The annualized fixed cost of plants for each location is found to be:

	Fixed Cost ($)	Low Capacity	Fixed Cost ($)	High Capacity
England	7,000	10	12,000	20
France	8,000	10	15,000	20
Spain	10,000	10	14,000	20
Germany	9,000	10	14,000	20
Italy	6,000	10	12,000	20
Sweden	9,000	10	13,000	20

*in thousands of dollars

1. (8 points) What is the lowest cost achievable for the production and distribution network?
2. (9 points) What is the minimum cost configuration (where are the plants located and what is the capacity of each plant)?
3. (8 points) Which plants serve which market in what volume?

NOTE: Please remember to add a constraint that will ensure having either a small capacity or a high capacity facility at a location. To do so, you can add up the binary variables of plant capacity for a location, and set it less than or equal to 1 as the right-hand side value.