West Inputs - Costs, Capacities, Demands (for Telecom Optic) Demand City Production and Transportation Cost per 1000 Units Supply City East South Midwest Chennai 210 230 230 Delhi 230 210 230 Kolkata 240 240 210 Mumbai 300 280 270 Demand 180 130 110 290 280 270 Capacity 200 6,500 5,500 5,600 Capacity 400 10,000 9,200 9,300 10,200 Q2) (30 marks) Blue Alr, is a manufacturer of air conditioners that has seen its demand grow significantly. The company anticipates the next year to be 180,000 units in the East, 130,000 units in the South, 110,000 units in the Midwest, and 100,000 Managers at Blue Air, are designing the manufacturing network and have selected four potential sites-Chennai, Ne and Mumbai. Plants could have a capacity of either 200,000 or 400,000 units. The annual fixed costs at the four loca Table along with the cost of producing and shipping an air conditioner to each demand region. 220 6,100 100 Define constraints Where should Blue Air, build its factories and how large should they be? with the follwoing constr Decision Variables Demand City - Production Allocation (1000 Units) South Midwest East West 1 a) Define all three constraints (read the note on yellow cells). (10 marks) 1) The demand at each regional market must be satisfied 2) No plant can supply more than its capacity 3) Each plant is either open (yi = 1) or closed (yi = 0) 1 1 Supply City Chennai Delhi Kolkata Mumbai = Small Plants Large Plants (1=open) (1=open) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 b) Define the total cost (read nore on cell C27). Then, minimize the total cost by running the Solver (using Simplex L save it on a new excel page under the name of "A2 (ARS)" (20 marks) Note) Make sure all parameters (objective, decision variables, and the constraints) are defined before running the S option setting before running the solver. Constraints Supply City Chennai Delhi Kolkata Mumbai Excess Capacity 604 604 604 604 176 Unmet Demand 126 106 96 Objective Function Cost = $ 66,340