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#1. (20 pts) Drylce Inc., is a manufacturer of air conditioners that has seen its demand grow significantly. The company anticipates nationwide demand for the next year to be 180,000 units in the South, 120,000 units in the Midwest, 110,000 units in the East, and 100,000 units in the West. Managers at Drylce are designing the manufacturing network and have selected four potential sites- New York, Atlanta, Chicago, and San Diego. Plants could have the capacity of either 200,000 or 400,000 units. The annual fixed costs at the four locations are shown in Table 1.1 and Table 1.2, along with the cost of producing and shipping an air conditioner to each of the four markets. Where should Drylce build its factories and how large should they be? Production and transport costs for Drylce Inc. Table 1.1 Demand Region Supply City East South Midwest West New York $211 $232 $240 $300 Atlanta $232 $212 $230 $280 Chicago $238 $230 $215 $270 San Diego $299 $280 $270 $225 Demand 110,000 180,000 120,000 100,000 Table 1.2 Plant Option Supply City Capacity Fixed Cost Capacity Fixed Cost New York 200,000 $6,000,000 400,000 $10,000,000 Atlanta 200,000 $5,500,000 400,000 $9,200,000 Chicago 200,000 $5,600,000 400,000 $9,300,000 San Diego 200,000 $6,100,000 400,000 $10,200,000 a. (6 pts) Clearly define decision variables b. (6 pts) What is the total cost (define the objective function) we are trying to minimize? First write the general formulation and then substitute the numbers. c. (8 pts) What are the constraints? First write the general formulation and then substitute the numbers. Supply constraint: Demand constraint: Others: d. (5 bonus pts) Solve the problem using excel