Question: Problem 1 3 - 1 0 Algo ( Generating Alternatives in Binary Optimization ) Detroit, Toledo, Denver, or Kansas City. The estimated annual fixed cost

Problem 13-10 Algo (Generating Alternatives in Binary Optimization) Detroit, Toledo, Denver, or Kansas City. The estimated annual fixed cost and the annual capacity for the four proposed plants are as follows:
\table[[Proposed Plant,Annual Fixed Cost,Annual Capacity],[Detroit,$175,000,10,000],[Toledo,$300,000,20,000],[Denver,$375,000,30,000],[Kansas City,$500,000,40,000]]
The company's long-range planning group developed forecasts of the anticipated annual demand at the distribution centers as follows:
\table[[Distribution Center,Annual Demand],[Boston,20,000],[Atlanta,30,000],[Houston,20,000]]
The shipping cost per unit from each plant to each distribution center is as follows:
\table[[,Distribution Centers],[Plant Site,Boston,Atlanta,Houston],[Detroit,5,2,3],[Toledo,4,3,4],[Denver,9,7,5],[Kansas City,10,4,2],[St. Louis,8,4,3]]
3
What is the optimal set of plants to open?
q,
(b) Using equation 13.1, find a second-best solution. What is the optimal set of plants to open?
Detroit & Denver
What is the increase in cost versus the best solution from part (a)?
$290000
 Problem 13-10 Algo (Generating Alternatives in Binary Optimization) Detroit, Toledo, Denver,

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!