Please take this setting (Tab 1 and Tab2) as your base case, all questions are referring to the base case.

Q1: You can add some extra capactity Y to Munich. However, producing more

than 10.000 adds some extra costs. More speficially, each ton produced

in Muinch beyond 10.000 tons adds X of costs per ton (on top of the transporation costs).Determine the maximum X for Y=1000 and Y=2000 that makes Munich use this extra capacity.

Q2: Each brewery is engaging in cost saving programs. Specifically, it can reduce the transportation costs to the regions. For each brewery, the sum of all savings cannot exceed 1 Euro. For example, Munich may cut 25ct out of the transportation costs to each region (total=4*25ct=1 Euro=):

Munich-East: Euro 5.00 --> Euro 4.75

Munich-West: Euro 3.50 --> Euro 3.25

....

Munich can also cut all of the max savings from just one region:

Munich-East: Euro 5.00 --> Euro 4.00

Any allocation is possible. How do they best allocate their savings and how much can you save in total with these cost cuttings?

Q3: You can cut in total (for all breweries and all regions) 1 Euro from the transporation costs. For example, you make cut 1/12=0.0833 EURO from all all entries in Tab1. You can also cut 1 Euro from just one entry: Munich-East: 5 Euro--> 4 Euro. How do you cut costs and how much can you save?

Q4: Re-do Q3, however, now with total cost cuts of 3 EURO.

Q5: Let us assume that you can control the demand by your marketing efforts. How would the "optimal" demand look like, assuming the total demand accross all 4 regions remains at 34k tons.

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