Frijo-Lane Food Products own farms in the Southwest and Midwest, where it grows and harvest potatoes. It then ships these potatoes to three processing plants in Atlanta, Baton Rouge, and Chicago, where different varieties of products, including chips, are produced. Recently, the company has experienced a growth in its product demand, so it wants to buy one or more new farms to produce more potato products. The company is considering six new farms with the following annual fixed costs and projected harvest: Farm Fixed Annual Costs ($1,000s) Projected Annual Harvest (thousands of tons) 1 $405 11.2 2 390 10.5 3 450 12.8 4 368 9.3 5 520 10.8 6 465 9.6 The company currently has the following additional available production capacity (tons) at its three plants, which it wants to utilize: Plant Available Capacity (thousands of tons) A 12 B 10 C 14 The shipping costs ($) per ton from the farms being considered for purchase to the plants are as follows: Plant (shipping costs, $/ton) Farm A B C 1 18 15 12 2 13 10 17 3 16 14 18 4 19 15 16 5 17 19 12 6 14 16 12 The company wants to know which of the six farms it should purchase to meet available production capacity at the minimum total cost, including annual fixed costs and shipping costs. Formulate an appropriate LP model for this problem. Please upload a single Excel file in which you must insert a text box and then type the following 1) Definition of decision variables, and 2) LP model. Finally, build the model In Excel and solve it using Excel solver.

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Frijo-Lane Food Products own farms in the Southwest and Midwest, where it grows and harvest potatoes. It then ships these potatoes to three processing plants in Atlanta, Baton Rouge, and Chicago, where different varieties of products, including chips, are produced. Recently, the company has experienced a growth in its product demand, so it wants to buy one or more new farms to produce more potato products. The company is considering six new farms with the following annual fixed costs and projected harvest:

 

 

Farm

Fixed Annual

Costs ($1,000s)

Projected Annual Harvest

(thousands of tons)

1

$405

11.2

2

390

10.5

3

450

12.8

4

368

9.3

5

520

10.8

6

465

9.6

 

The company currently has the following additional available production capacity (tons) at its three plants, which it wants to utilize:

 

 

Plant

Available Capacity

(thousands of tons)

A

12

B

10

C

14

 

The shipping costs ($) per ton from the farms being considered for purchase to the plants are as follows:

 

Plant (shipping costs, $/ton)

Farm

A

B

C

1

18

15

12

2

13

10

17

3

16

14

18

4

19

15

16

5

17

19

12

6

14

16

12

 

The company wants to know which of the six farms it should purchase to meet available production capacity at the minimum total

cost, including annual fixed costs and shipping costs. Formulate an appropriate LP model for this problem.

 

Please upload a single Excel file in which you must insert a text box and then type the following 1) Definition of decision variables, and 2) LP

model. Finally, build the model In Excel and solve it using Excel solver.

 

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