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Question 1: A Canadian company was able until now to meet the demand of its customers from its factory located in the Quebec region. Strong sales growth, however, is forecasted for next year in the two markets served by the company (1:Eastern Quebec, 2: Western Quebec). The company, therefore, is considering the construction of another plant for which two potential sites have been identified: one in Rimouski and the other in Longueuil. The collected data are provided in Table below. Transportation costs (S per ton) Market 1 Market 2 600 400 Quebec plant Rimouski platform Longueuil platform Potential market (ton) 800 1000 300 200 700 700 Production cost Capacity ($ per ton) $3800 $3500 $3600 (ton) 1000 1000 1000 Fixed cost ($1000) $4000 $5900 $6200 Products sold can be grouped in a single family and the average sale price of the products of this family is $50,000 per ton on both markets. (a) Draw an activity graph that corresponds to this context. (b) Propose an optimization model to solve this problem. (c) Implement your model using the any solver; determine whether to build a new plant and, if so, on which site?

Question 1: A Canadian company was able until now to meet the demand of its customers from its factory located in the Quebec region. Strong sales growth, however, is forecasted for next year in the two markets served by the company (1:Eastern Quebec, 2: Western Quebec). The company, therefore, is considering the construction of another plant for which two potential sites have been identified: one in Rimouski and the other in Longueuil. The collected data are provided in Table below. Transportation costs (S per ton) Market 1 Market 2 600 400 Quebec plant Rimouski platform Longueuil platform Potential market (ton) 800 1000 300 200 700 700 Production cost Capacity ($ per ton) $3800 $3500 $3600 (ton) 1000 1000 1000 Fixed cost ($1000) $4000 $5900 $6200 Products sold can be grouped in a single family and the average sale price of the products of this family is $50,000 per ton on both markets. (a) Draw an activity graph that corresponds to this context. (b) Propose an optimization model to solve this problem. (c) Implement your model using the any solver; determine whether to build a new plant and, if so, on which site?

Practical Management Science
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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Question 1: A Canadian company was able until now to meet the demand of its customers from its factory located in the Quebec region. Strong sales growth, however, is forecasted for next year in the two markets served by the company (1:Eastern Quebec, 2: Western Quebec). The company, therefore, is considering the construction of another plant for which two potential sites have been identified: one in Rimouski and the other in Longueuil. The collected data are provided in Table below. Quebec plant Rimouski platform Longueuil platform Potential market (ton) Transportation costs ($ per ton) Market 1 Market 2 600 400 200 700 700 1000 300 800 Production cost Capacity Fixed cost ($ per ton) $3800 $3500 $3600 (ton) 1000 1000 1000 ($1000) $4000 $5900 $6200 Products sold can be grouped in a single family and the average sale price of the products of this family is $50,000 per ton on both markets. (a) Draw an activity graph that corresponds to this context. (b) Propose an optimization model to solve this problem. (c) Implement your model using the any solver; determine whether to build a new plant and, if so, on which site?
Transcribed Image Text:Question 1: A Canadian company was able until now to meet the demand of its customers from its factory located in the Quebec region. Strong sales growth, however, is forecasted for next year in the two markets served by the company (1:Eastern Quebec, 2: Western Quebec). The company, therefore, is considering the construction of another plant for which two potential sites have been identified: one in Rimouski and the other in Longueuil. The collected data are provided in Table below. Quebec plant Rimouski platform Longueuil platform Potential market (ton) Transportation costs ($ per ton) Market 1 Market 2 600 400 200 700 700 1000 300 800 Production cost Capacity Fixed cost ($ per ton) $3800 $3500 $3600 (ton) 1000 1000 1000 ($1000) $4000 $5900 $6200 Products sold can be grouped in a single family and the average sale price of the products of this family is $50,000 per ton on both markets. (a) Draw an activity graph that corresponds to this context. (b) Propose an optimization model to solve this problem. (c) Implement your model using the any solver; determine whether to build a new plant and, if so, on which site?
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