Question: The following spreadsheet screen-print shows the optimal solution for a network optimization problem. Analyze the solution and answer questions 14 and 15. Inputs - Costs,

The following spreadsheet screen-print shows the optimal solution for a network optimization problem. Analyze the solution and answer questions 14 and 15. Inputs - Costs, Capacities, Demands Demand RegionProduction and Transportation Cost per 1,000,000UnitsFixed LowFixed HighSupply RegionN. AmericaS. AmericaEuropeAsiaAfricaCost ($)CapacityCost($)CapacityN. America81 92 101 130 115 6,000 109,000 20S. America117 77 108 98 100 4,500 106,750 20Europe102 105 95 119 111 6,500 109,750 20Asia115 125 90 59 74 4,100 106,150 20Africa142 100 103 105 71 4,000 106,000 20Demand12814167Decision VariablesDemand Region - Production Allocation (1000 Units)PlantsPlantsSupply RegionN. AmericaS. AmericaEuropeAsiaAfrica(1=open)(1=open)N. America0000000S. America12800001Europe0000000Asia00416001Africa00100701ConstraintsSupply RegionExcess CapacityN. America0S. America0Europe0Asia0Africa3N. AmericaS. AmericaEuropeAsiaAfricaUnmet Demand00000Objective FunctionCost =$ 23,751 4 14.Which plants are open and how do these plants meet the demand for the five regions? Are there any plant(s) with excess capacity? Is yes, which plant(s) and what is the excess capacity at these plant(s)? (5 points) 15.How many decision variables were used to model and solve the above problem? Describe the nature of these decision variables? What are the components of the objective function? (5points)16.A company produces commodity products such as salt, oil, soap, etc. (i)What kind of a supply chain system (push or pull) do you recommend thiscompany to use? Why. (5 points)(ii)What kind of distribution network do you recommend this company to use? Why? (5 points)17.Briefly define a functional product and an innovative product and identify at least one example of each product type. Also, describe the impact that this distinction has on supply chain planning. (10 points)5 18.For the following two scenarios, describe whether the implied demand uncertainty would increase, decrease or stay the same? Explain the reason why.(i)A company introducing five new products to the market at the same time. (5 points)(ii) A company planning to enhance its service level from 90% to 95%. (5 points)19.Where would you locate the following companies on the responsiveness-efficiency spectrum (fill in the blanks with the words efficient or responsive)Efficient Responsive(i)An automotive company that opens up a car assembly plant in a country with large car market. _________________ (4 points)(ii)A factory with excess capacity. ________________ (4 points)(iii) A company that uses rail transportation system to ship its finished products. _______________ (4 points)20.7-Eleven Japan uses a strategy of opening convenience stores in areas that are already dominated by 7-Eleven rather than in areas where it has little or no presence. What are the reasons for the success of this particular strategy? (4 points)6 21.Considering supply chain costs, as the number of facilities increases, the transportation cost goes down to a certain level and it then starts increasing. Provide anexplanation for this behavior of the transportation cost. (4 points)

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