. Problem statement: For an existing supply network, identify the market assignment for each facility that minimizes the total cost. Wild D1 = 50,000 C1 = 200,000 $3 wil D2 = 100,000 $1 C2 = 60,000 D3 = 50,000 Notes: $ amounts show unit transportation cost. C indicates capacity, D indicates demand. Single Product Production costs are the same in different locations, warehousing costs sties & are the same, warehouses have enough capacity to store/move all demanded quantity Cry 8. Lean System Design -Selecting Facilities and Routes in a Supply Network (20 points) For the class example of facility assignment, assume it is a new network design and the plants and warehouses/distribution centers represent possible options. The management would like to decide whether to open these facilities (plants and warehouses) while simultaneously identifying the market assignment for each facility that minimizes the total cost. Assume you are given the opening costs for the plants and warehouses. a) (15 points) How would you modify the mathematical model that was provided in the class notes to solve this problem? -(5 points) What are the decision variables? Highlight and describe the new decisions. -(5 points) What is the objective function? Highlight and describe the modification to the objective function. -(5 points) What are the constraints? Highlight and describe the modified constraints b) (5 points) Assuming that opening a plant costs $100.000 and a warehouse costs $60,000, create an Excel linear programming model to solve it. (HINT: you can build on the models provided in the lectures and you created during the HW assignment) . Problem statement: For an existing supply network, identify the market assignment for each facility that minimizes the total cost. Wild D1 = 50,000 C1 = 200,000 $3 wil D2 = 100,000 $1 C2 = 60,000 D3 = 50,000 Notes: $ amounts show unit transportation cost. C indicates capacity, D indicates demand. Single Product Production costs are the same in different locations, warehousing costs sties & are the same, warehouses have enough capacity to store/move all demanded quantity Cry 8. Lean System Design -Selecting Facilities and Routes in a Supply Network (20 points) For the class example of facility assignment, assume it is a new network design and the plants and warehouses/distribution centers represent possible options. The management would like to decide whether to open these facilities (plants and warehouses) while simultaneously identifying the market assignment for each facility that minimizes the total cost. Assume you are given the opening costs for the plants and warehouses. a) (15 points) How would you modify the mathematical model that was provided in the class notes to solve this problem? -(5 points) What are the decision variables? Highlight and describe the new decisions. -(5 points) What is the objective function? Highlight and describe the modification to the objective function. -(5 points) What are the constraints? Highlight and describe the modified constraints b) (5 points) Assuming that opening a plant costs $100.000 and a warehouse costs $60,000, create an Excel linear programming model to solve it. (HINT: you can build on the models provided in the lectures and you created during the HW assignment)