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Inputs - Costs, Capacities, Demands (for TelecomOptic) Demand City Production and Transportation Cost per 1000 Units Supply City East South Midwest West New York 210 230 230 290 Atlanta 230 210 230 280 Chicago 240 230 210 270 300 280 270 220 Demand (1000) 180 120 110 100 Capacity (1000) Capacity (1000) 200 ($) 400 ($) 6,000 10,000 5,500 9,200 5,600 9,300 6,100 10,200 Q1) Drylce, Inc., is a manufacturer of air conditioners that has seen its demand grow significantly. The company anticipates nationwide demand for the next year to be 180,000 units in the South, 120,000 units in the Midwest, 110,000 units in the East, and 100,000 units in the West. Managers at Dryice are designing the manufacturing network and have selected four potential sitesNew York, Atlanta, Chicago, and San Diego. Plants could have a capacity of either 200,000 or 400,000 units. The annual fixed costs at the four locations are shown in Table along with the cost of producing and shipping an air conditioner to each of the four markets. Where should Dryice build its factories and how large should they be? San Diego Decision Variables Supply City New York Atlanta Chicago San Diego Demand City - Production Allocation (1000 Units) East South Midwest West 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Small Plants (1-open) 1 1 1 1 Large Plants (1=open) 1 1 1 1 1 Constraints Supply City New York Atlanta Chicago San Diego Unmet Demand Excess Capacity 176 116 106 96 176 116 106 96 Objective Function Cost = $ 65,830