Question: Please help me solve this! OrM 310- HWB OP (OPTIONAL) - Fixed Costs 8 Asset Selection Due: Fri. Dec. 2. 11:59pm Rroblem #2 - 14pts

Please help me solve this!
Please help me solve this! OrM 310- HWB OP
Please help me solve this! OrM 310- HWB OP
OrM 310- HWB OP (OPTIONAL) - Fixed Costs 8 Asset Selection Due: Fri. Dec. 2. 11:59pm Rroblem \#2 - 14pts (not from fext), (this is an asset selection problem that takes into consideration foxed costs) Utopia Company operates a plant in Avalon with a monthly capacity of 35,000 units and a plant in Bridgetown with a monthly capacity of 40,000 units. Product is shipped to regional distribution centers located in Riverdale, Seaside and Teatown. The long-range planning group at Utopia reevaluated their forecasts and determined that due to an anticipated increase in demand in the next 5 years, the company should consider increasing capacity by constructing a new plant in one or more of the following cities: Cedar, Daphne, Elm or Florence. The estimated monthly fixed cost and the monthly capacity for the four proposed plants are as follows: The anticipated monthly demands at the distribution centers are as follows: The shipping cost per unit from each plant to each distribution center is shown below A diagram of the network associated with the above problem is shown on the next page Let Xi]= the units shipped from plant i to distribution center j, with i=A,B,C,D,E or F and j=1,2,3. For example, Xos designates the \& of units shipped from Plant D to Distribution Center 1. (a) Why is the company considering opening at least one new plant? (b) How many shipment variables will the LP formulation have? (That is, how many Xij variables are included in the formulation?) (c) Why do we need to introduce binary variables YC. YD, YE and YF? Do we need a binary variables YA and YB? Why? (d) Formulate a linear programming model for minimizing total costs (shipping costs +fixed costs): you should have a total of 9 constraints. You can use steps (i)-(iv) below as a guide for writing the LP 1. Use suitable variables to express the objective function (minimbe shipping costs + fixed costs). ii. Write the demand constraints for Distribution Centers 1,2 and 3. iii. Write the supply constraints for plants A and B. iv. Use sutable variables to write the supply constraints for plants C, D, E and F. (e) Write a constraint to express a requirement that the company will open only one new plant (f) It the company will open only one plant, which plant do you think it will be C, D. E or F? Why? (g) Write a constraint to express a requirement that the company will elther open both plants C and D or neither of them (that is, If plant C opens then plant D has to open as well and it plant D is open then Plant C has to open too) Extra credit option I (4 points): Use Excol solver to solve the linear program formulated in part (d): Which plants will open and what is the shipping plan (i.e. how many units will be shipped from each plant to each distribution center?) What is the associated costs of this plan? Extra credt option II (2 points): Use Excel solver to solve the inear program formulated in part (d) wet the additional constraint you determined in (e). Which plant will open and how mary units will be shipped from each plant to each disiritution center? What is the associated costs of this plan

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