QUESTION $2$: BREADCO

Breadco Bakeries is expanding across Indiana with the goal of meeting bread

demands in multiple regions while optimizing long$-$term costs. In addition to Evansville,

Indianapolis, and South Bend, Breadco is considering a fourth potential site in $**$Fort

Wayne$**.$ Each bakery location has unique production capacities and fixed costs, and

the maximum production capacity now varies due to regional supply chain limitations:

Evansville: up to $900,000$ loaves$/$year $($initial cost: $$5$ million$)$

Indianapolis: up to $950,000$ loaves$/$year $($initial cost: $$4$ million$)$

South Bend: up to $800,000$ loaves$/$year $($initial cost: $$4\mathrm{.}5$ million$)$

Fort Wayne: up to $850,000$ loaves$/$year $($initial cost: $$4\mathrm{.}7$ million$)$

Breadco's customers have increased demand levels, now totaling $^(****1,000,000)$ loaves

for Customer $1^(****),**500,000$ loaves for Customer $2^(****),$ and $^(****)400,000$ loaves for

Customer $3^(****).$ Table $21($Expanded$)$ provides the cost per loaf for baking and shipping

from each bakery location to each customer.

Breadco also faces varying annual inflation rates for each location that impact

production and shipping costs. Furthermore, operational efficiency factors unique to

each location introduce an additional annual maintenance cost that grows at a rate

of $**1\%$ to $3\%$ per year"$*$ depending on the site.

To add complexity, Breadco must:

Decide whether to establish bakeries in "two or more locations$**.$

Meet minimum production levels of at least $850,000$ loaves per year in $**$each

active location$**.$

Factor in a $1\%$ annual increase in demand for each customer, requiring a

dynamic approach to future production scaling.

TABLE $2$

Formulate an integer programming $($IP$)$ model that minimizes Breadco's total

lifetime costs, including discounted future shipping, production, and

maintenance costs, while meeting current and projected demand for each

customer. Use a discount rate of $**111//2\%****$ per year for future costs.

use solver add in on excel sheet.

can you please help me with this question?