Question: Problem 3 (10 Points) (-2/error) Do not solve these problemsformulate/define them only. XYZ Manufacturing Company operates five plants in A, O, OM, TH, and in
Problem 3 (10 Points) (-2/error)
Do not solve these problemsformulate/define them only.
XYZ Manufacturing Company operates five plants in A, O, OM, TH, and in T. The company ships products from it plants to its distribution centers (DCs): DC 1, DC 2, & DC 3. You are given the data below regarding plant capacities, annual fixed costs for the plants (incurred if and only if the plant is used and ships greater than 0 units), manufacturing cost per unit + shipping cost per unit, and demand at each DC.
Note: The CEO has mandated that the TH plant MUST be used. You will need to add a constraint for this mandate and to show your additional work. Formulate a model to determine which plants to use to minimize total cost.
| Plant | Annual Fixed Cost | DC 1 | DC 2 | DC 3 | Plant Capacity |
| A | $1,500,000 | $8.75 | $9.60 | $8.30 | 49,000 |
| O | $1,320,000 | $8.20 | $7.10 | $8.05 | 21,000 |
| OM | $1,680,000 | $7.30 | $6.20 | $7.55 | 28,000 |
| TH | $1,480,000 | $6.10 | $8.45 | $5.22 | 44,000 |
| T | $900,000 | $8.92 | $8.34 | $9.25 | 26,000 |
| DC Demand= | 38,500 | 36,500 | 37,900 |
Formulate the model using the headings listed below:
Decision Variables:
Objective Function:
Constraints:
Additional Work for Constraints:
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