The combined Model 1 & Model 2 production capacities are 150,000 units at Plant A and 180,000 units at plant B and 30,000 units at Plant C. The Model 3 production capacities are 100,000 units at Plan A and 90,000 units at the plant B and 40,000 at Plant C. The cost of shipping from plant A is $0.2 per unit and from plant B is $0.25 per unit and from Plan C 0.3.

Q1.Develop a linear optimization setup that XYZ can use to determine how many units of each battery model to produce at each plant to minimize the total production and shipping cost of the new contract. Show all equations & details in the setup of your optimization model..

Q2.Solve the linear program\model (setup) developed in Q1 to determine the optimal production plan quantities.

Q3Use sensitivity analysis to determine how much the production and/or shipping cost per unit would have to change to produce additional units of Model 1 inplant A.

Q4.Use sensitivity analysis to determine how much the production and/or shipping cost per unit would have to change to produce additional units of Model 2 in plant B

Q5.Use sensitivity analysis to determine how much the production and/or shipping cost per unit would have to change to produce additional units of Model 3 in plant C

Q6. XYZ plans to close one plant. As a consultant to XYZ - which plant would you recommend to close?Mention two reasons (use bullets)

Assumption:

Closing plant:

Why1:

Whh2: