The CoolAire Company manufactures air conditioners that are sold to five different retail customers across the United States. The company is evaluating its manufacturing and logistics strategy to ensure that it is operating in the most efficient manner possible. The company can produce air conditioners at six plants across the country and stock these units in any of four different candidate warehouses. The cost of manufacturing and shipping a unit between each plant and warehouse is summarized in the following table along with the monthly capacity and fixed cost of operating each plant. Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 Plant 6 Warehouse 1 Warehouse 2 Warehouse 3 Warehouse 4 Warehouse 1 $700 $800 $850 $600 $500 $700 Demand Warehouse 2 $1,000 $500 $600 Customer 1 $40 $60 $55 $80 $800 $600 $600 Warehouse 3 $900 $600 $700 $500 $450 $750 Customer 2 $80 $50 $40 $30 Customer 3 $60 $75 $65 $80 The monthly demand from each customer is summarized next: Customer 1 200 Customer 2 300 Warehouse 4 $1,200 $700 $500 $600 $700 $500 Similarly, the per-unit cost of shipping units from each warehouse to each customer is given in the following table, along with the monthly fixed cost of operating each warehouse. Customer 4 $90 $40 $60 $50 Fixed Cost $55,000 $40,000 $45,000 $50,000 $42,000 $40,000 Customer 5 $50 $35 $80 $60 Customer 3 200 Capacity 300 200 300 $40,000 $50,000 $35,000 $60,000 250 350 400 Fixed Cost Capacity 700 500 400 600 Customer 4 150 Impact on environment 5 9 7 6 8 9 Impact on environment 8 7 9 5 Customer 5 250
The CoolAire Company manufactures air conditioners that are sold to five different retail customers across the United States. The company is evaluating its manufacturing and logistics strategy to ensure that it is operating in the most efficient manner possible. The company can produce air conditioners at six plants across the country and stock these units in any of four different candidate warehouses. The cost of manufacturing and shipping a unit between each plant and warehouse is summarized in the following table along with the monthly capacity and fixed cost of operating each plant. Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 Plant 6 Warehouse 1 Warehouse 2 Warehouse 3 Warehouse 4 Warehouse 1 $700 $800 $850 $600 $500 $700 Demand Warehouse 2 $1,000 $500 $600 Customer 1 $40 $60 $55 $80 $800 $600 $600 Warehouse 3 $900 $600 $700 $500 $450 $750 Customer 2 $80 $50 $40 $30 Customer 3 $60 $75 $65 $80 The monthly demand from each customer is summarized next: Customer 1 200 Customer 2 300 Warehouse 4 $1,200 $700 $500 $600 $700 $500 Similarly, the per-unit cost of shipping units from each warehouse to each customer is given in the following table, along with the monthly fixed cost of operating each warehouse. Customer 4 $90 $40 $60 $50 Fixed Cost $55,000 $40,000 $45,000 $50,000 $42,000 $40,000 Customer 5 $50 $35 $80 $60 Customer 3 200 Capacity 300 200 300 $40,000 $50,000 $35,000 $60,000 250 350 400 Fixed Cost Capacity 700 500 400 600 Customer 4 150 Impact on environment 5 9 7 6 8 9 Impact on environment 8 7 9 5 Customer 5 250
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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you also should use the binary constraints to fined out how many plants and DC to open
please use excel solver
Transcribed Image Text:Case description
The CoolAire Company manufactures air conditioners that are sold to five different retail customers across the United States. The
company is evaluating its manufacturing and logistics strategy to ensure that it is operating in the most efficient manner possible. The
company can produce air conditioners at six plants across the country and stock these units in any of four different candidate
warehouses. The cost of manufacturing and shipping a unit between each plant and warehouse is summarized in the following table
along with the monthly capacity and fixed cost of operating each plant.
Plant 1
Plant 2
Plant 3
Plant 4
Plant 5
Plant 6
Warehouse 1
Warehouse 2
Warehouse 3
Warehouse 4
Warehouse 1
$700
$800
$850
$600
$500
$700
Demand
Warehouse 2
$1,000
$500
$600
Customer 1
$40
$60
$55
$80
$800
$600
$600
Warehouse 3
$900
$600
$700
$500
$450
$750
Customer 2
$80
$50
$40
$30
Customer 3
$60
$75
$65
$80
The monthly demand from each customer is summarized next:
Customer 1
200
Customer 2
300
Warehouse 4
$1,200
$700
$500
Similarly, the per-unit cost of shipping units from each warehouse to each customer is given in the following table, along with the
monthly fixed cost of operating each warehouse.
$600
$700
$500
Customer 4
$90
$40
$60
$50
Fixed Cost
$55,000
$40,000
$45,000
$50,000
$42,000
$40,000
Customer 3
200
Capacity
300
200
300
250
350
400
Customer 5 Fixed Cost Capacity
$40,000
$50
700
$35
$50,000
500
$80
$35,000
400
$60
$60,000
600
Customer 4
150
Impact on
environment
5
9
7
6
8
9
Impact on
environment
8
7
9
5
Customer 5
250
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