a. Create a spreadsheet model for this problem and solve it. b. What is the optimal solution?

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Chapter1: Combinatorial Analysis
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Sentry wants to determine the least expensive way of
manufacturing and shipping locks from its plants to the
distributors. Because the total demand from distributors
exceeds the total production capacity for all the plants,
Sentry realizes it will not be able to satisfy all the demand
for its product, but wants to make sure each distributor will
have the opportunity to fill at least 80% of the orders
received.
a. Create a spreadsheet model for this problem and
solve it.
b. What is the optimal solution?
Transcribed Image Text:Sentry wants to determine the least expensive way of manufacturing and shipping locks from its plants to the distributors. Because the total demand from distributors exceeds the total production capacity for all the plants, Sentry realizes it will not be able to satisfy all the demand for its product, but wants to make sure each distributor will have the opportunity to fill at least 80% of the orders received. a. Create a spreadsheet model for this problem and solve it. b. What is the optimal solution?
The Sentry Lock Corporation manufactures a popular
commercial security lock at plants in Macon, Louisville,
Detroit, and Phoenix. The per unit cost of production at
each plant is $35.50, $37.50, $39.00, and $36.25, respectively,
while the annual production capacity at each plant is 18,000,
15,000, 25,000, and 20,000, respectively.
Sentry's locks are sold to retailers through wholesale
distributors in seven cities across the United States. The unit
cost of shipping from each plant to each distributor is
summarized in the following table along with the forecasted
demand from each distributor for the coming year.
Unit Shipping Cost to Distributor in
St. Louis
Plants
Tacoma
San Diego
Dallas
Denver
Tampa
Baltimore
Macon
$2.50
$2.75
$1.75
$2.00
$2.10
$1.80
$1.65
Louisville
$1.50
$1.85
$1.90
$2.25
$1.85
$1.90
$1.60
$1.00
$1.85
Detroit
$2.30
$2.25
$1.25
$1.50
$2.00
$1.90
8,500
$1.75
12,600
Phoenix
$0.90
$2.50
$2.65
$1.60
13,500
$2.00
Demand
14,500
18,000
15,000
9,000
Transcribed Image Text:The Sentry Lock Corporation manufactures a popular commercial security lock at plants in Macon, Louisville, Detroit, and Phoenix. The per unit cost of production at each plant is $35.50, $37.50, $39.00, and $36.25, respectively, while the annual production capacity at each plant is 18,000, 15,000, 25,000, and 20,000, respectively. Sentry's locks are sold to retailers through wholesale distributors in seven cities across the United States. The unit cost of shipping from each plant to each distributor is summarized in the following table along with the forecasted demand from each distributor for the coming year. Unit Shipping Cost to Distributor in St. Louis Plants Tacoma San Diego Dallas Denver Tampa Baltimore Macon $2.50 $2.75 $1.75 $2.00 $2.10 $1.80 $1.65 Louisville $1.50 $1.85 $1.90 $2.25 $1.85 $1.90 $1.60 $1.00 $1.85 Detroit $2.30 $2.25 $1.25 $1.50 $2.00 $1.90 8,500 $1.75 12,600 Phoenix $0.90 $2.50 $2.65 $1.60 13,500 $2.00 Demand 14,500 18,000 15,000 9,000
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