Tesla manufactures cars in three plants and then ships them to four regions of the country as
Question:
Tesla manufactures cars in three plants and then ships them to four regions of the country as follows:
| Region 1 | Region 2 | Region 3 | Region 4 | Capacity |
Plant 1 | $131 | $218 | $266 | $120 | 450 |
Plant 2 | $250 | $116 | $263 | $278 | 600 |
Plant 3 | $178 | $132 | $122 | $180 | 500 |
Demand | 450 | 200 | 300 | 300 |
|
A plant's capacity is listed in the rightmost column, while a regions demand is represented in the bottom
row. The unit costs to ship one vehicle from each plant to each region are listed in the middle.
Questions:
Elon Musk would like to extend the capabilities of the initial baseline model to more closely reflect the specifics of the actual situation. Since unit production costs vary from plant to plant, and the selling prices vary across the regions, there are different after tax profit implications associated with where the car is produced and sold, and where it is ultimately shipped to.
Please performing LP model on excel in detail.
| Unit Production Cost | Tax Rate |
Plant 1 | $14,350 | 30% |
Plant 2 | $16,270 | 35% |
Plant 3 | $16,940 | 22% |
| Unit Selling Price |
Region 1 | $19,290 |
Region 2 | $20,520 |
Region 3 | $17,570 |
Region 4 | $18,320 |
For example, if Plant 1 produces an auto and ships it to Region 2, the before tax profit will be the unit's selling price in the Region, less the production costs from the Plant, less the shipping costs from the Plant to the Region (= $20,520 - $14,350 - $218 = $5,952). Since it was produced at Plant 1, the applicable after-tax profit would be; $5,952*(1-30%) = $4,166.40
Enhance the previous Model from Part A to consider the objective of maximizing after-tax profits. How does the enhancement of the model impact the solution recommendations.
Understanding Basic Statistics
ISBN: 9781111827021
6th Edition
Authors: Charles Henry Brase, Corrinne Pellillo Brase