Question: Pls solve with excel solver, Show it step by step, and add Excel screenshots to make it clear. The company hopes to maximize the profit.
Pls solve with excel solver, Show it step by step, and add Excel screenshots to make it clear.
The company hopes to maximize the profit.
The company needs to decide where to build the warehouse, and how many units of product to serve.
NOT all demand need to be fulfilled, the capacity of warehouses is limited.
Data for transshipment cost per million units from warehouses to divided markets is provided.
Data for fixed cost, capacity of warehouses, revenue for selling product and potential demand in each market division is also provided.
| Warehouse-Demand: Locations Warehousing & Transportation Costs & Revenue | |||||||||
| Costs (p/million units) | Demand Locations | ||||||||
| Warehouse | Northeast | Midatlantic | South | Midwest | Upper Midwest | Southwest | Pacific Northwest | fixed cost | warehouse capacity |
| Chicago | 4.5 | 5.0 | 4.6 | 5.5 | 4.8 | 4.1 | 4.9 | 30000 | 200 |
| NYC | 4.8 | 4.6 | 4.9 | 5.7 | 5.7 | 5.9 | 4.0 | 40000 | 150 |
| LA | 5.2 | 5.1 | 5.1 | 4.2 | 4.7 | 4.0 | 5.0 | 35000 | 150 |
| Knoxville | 5.2 | 5.9 | 4.3 | 5.9 | 5.7 | 4.1 | 4.7 | 20000 | 200 |
| Atlanta | 4.9 | 5.3 | 4.1 | 4.5 | 4.7 | 5.6 | 4.0 | 35000 | 100 |
| demand | 150 | 150 | 100 | 100 | 100 | 150 | 100 | ||
| revenue (p/million units) | 313 | 303 | 310 | 292 | 295 | 300.0 | 297.0 | ||
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