PLS HELP - WE WILL LEAVE THUMBS UP!

Problem 3: (25 points)

Blue Computers, a major server manufacturer in the United States, currently has options to build plants in Kentucky, Pennsylvania, North Carolina and California. In every region, Blue Computers can decide between a low-capacity plant (400,000 units) and/or a high capacity one (800,000 units). The firm divides the United States into four markets: northeast, southeast, Midwest, and south. Annual fixed costs, production and shipping costs per unit, and regional demand are shown in the Table below.

a) If Blue Computers sets an objective of minimizing total fixed and variable costs, where should they build their new plants? How should the network be structured? Hint: Blue Computers can decide to open both a low and high-capacity plants in the same region.

b) Revise your answer to part (a) if Blue Computers decide to only open HighCapacity plants.

PLEASE INCLUDE EXCEL SCREENSHOTS, THANK YOU

Variable Production & Shipping Cost ($/unit) Northeast Southeast Midwest South 185 180 175 175 170 190 180 200 Supply Region Kentucky Pennsylvania N. Carolina California Demand Fixed Costs ($) Low Cap. High Cap. $6,000,000 $10,000,000 $5,500,000 $9,200,000 $5,600,000 $9,300,000 $6,100,000 $10,200,000 180 180 184 185 220 220 195 195 1,050,000 600,000 600,000 450,000