Question: please do it on the excel with detials ABC has been experiencing a significant decline in sales. The company anticipates demand for the next year

please do it on the excel with detials

ABC has been experiencing a significant decline in sales. The company anticipates demand for the next year to be 18,000 units in the East, 12,000 units in the South, 11,000 units in the Midwest, and 10,000 units in the West. ABC currently has three manufacturing plants. The current capacities, the annual fixed costs (if kept open) and the production cost per unit for each of the three plants are shown in the table below, along with the shipping costs to each of the four markets. Which plant or plants should ABC close and how should the product be distributed to each region?

((Hint: Three binary variables to decide which plants will be open, Three Integer variables to decide how much to produce in each plant and 12 integer variables to decide the shipping schedule.

Three constraints for units produced at each plant, three constraints to ensure that the total shipped out of each plant does not exceed production, and four constraints to ensure that demand is met.)

Current Plant Sites and costs:

Plant

Shipping Costs to Regions($/unit)

Cost and capacity of plants

Locations

East

South

Midwest

West

Production cost $/unit

FC $/ yr open

Annual Capacity

Raleigh

1.90

1.80

2.20

2.40

$45

950,000

40,000

Milwaukee

2.20

2.30

1.80

2.20

$48

980,000

40,000

Houston

2.00

1.70

2.20

2.50

$47

970,000

40,000

Which plant or plants should be closed down?

Milwaukee

Specify the shipping schedule:

Plant

Shipping Schedule to each Region

Total Shipped

Excess capacity

Locations

East

South

Midwest

West

Out of plant

Of each plant

Raleigh

Milwaukee

Houston

Total Shipped

Annual Fixed Cost: ___________

Annual Production Cost: _________

Annual Shipping Cost: ___________

Total Annual Cost: ____

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!