There are 3 potential sites for consideration for building a distribution center to ship to 3 customer zones. Like the example we have solved in Excel, the information regarding demand at each customer zone, shipping cost from a potential distribution centre to a customer zone, and fixed cost of building a distribution center at each location with a certain capacity is provided in the table below. Each distribution, if built, can operate at either the capacity level of 3,500 (medium size) or 7,500 (large size). Using Solver in Excel, solve this Capacitated Plan Location problem and select the correct answer from the following choices.

Potential Customer 1 Customer 2 Customer 3 Fixed Cost Fixed Cost

Site Medium Large

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Site 1 10 13 15 10,000 18,000

Site 2 20 16 12 15,000 26,000

Site 3 14 26 43 20,000 35,000

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Demand 1,000 5,000 4,500

Select one:

a. None of the choices.

b. The optimal objective function value is $107,500 and there is excess capacity of 500 at site 2.

c. The optimal objective function value is $107,500 and there is excess capacity of 500 at site 3.

d. The optimal objective function value is $195,000 and there is no excess capacity at the built facilities.

e. The optimal objective function value is $165,000 and there is excess capacity of 500 at site 1.

f. The optimal objective function value is $195,000 and there is excess capacity of 500 at site 2.

g. The optimal objective function value is $165,000 and there is excess capacity of 500 at site 2.

h. The optimal objective function value is $165,000 and there is no excess capacity at the built facilities.

i. The optimal objective function value is $107,500 and there is excess capacity of 500 at site 1.