SunOil, the vice president of supply chain, decides to view the worldwide demand in terms of five regions-North America, South America, Europe, Africa, and Asia. The data collected are shown in the table. Supply region N. America S. America Europe Asia Africa Demand (M units) Demand region Production & Transportation Cost (SK/ M units) Fixed Low Fixed High costs capacity costs capacity (M units) (SK) (M units) 81 101 N. America S. America Europe Asia Africa (SK) 130 115 6,000 10 9,000 20 6,750 20 119 111 6,500 10 9,750 117 98 100 4,500 10 102 20 115 90 59 74 4,100 10 6,150 105 71 4,000 10 142 103 6,000 12 14 16 7 92 77 105 125 100 8 108 95 The vice president wants to know what the lowest-cost network should look like. 20 20
SunOil, the vice president of supply chain, decides to view the worldwide demand in terms of five regions-North America, South America, Europe, Africa, and Asia. The data collected are shown in the table. Supply region N. America S. America Europe Asia Africa Demand (M units) Demand region Production & Transportation Cost (SK/ M units) Fixed Low Fixed High costs capacity costs capacity (M units) (SK) (M units) 81 101 N. America S. America Europe Asia Africa (SK) 130 115 6,000 10 9,000 20 6,750 20 119 111 6,500 10 9,750 117 98 100 4,500 10 102 20 115 90 59 74 4,100 10 6,150 105 71 4,000 10 142 103 6,000 12 14 16 7 92 77 105 125 100 8 108 95 The vice president wants to know what the lowest-cost network should look like. 20 20
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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Can you please solve this Q using Solver for the case of High capacity. please make all the steps clear

Transcribed Image Text:SunOil, the vice president of supply chain, decides to view
the worldwide demand in terms of five regions-North
America, South America, Europe, Africa, and Asia. The data
collected are shown in the table.
Supply region
N. America
S. America
Europe
Asia
Africa
Demand (M units)
Demand region
Production & Transportation Cost Fixed Low Fixed High
(SK/ M units)
costs capacity costs capacity
N. America S. America Europe Asia Africa (SK)
101
108
(M units) (SK) (M units)
130 115 6,000 10 9,000 20
98 100 4,500 10 6,750 20
119 111 6,500 10 9,750 20
90 59 74 4,100 10
95
6,150
20
103 105 71
4,000
10
6,000
20
14
16 7
81
117
102
115
142
12
92
77
105
125
100
8
The vice president wants to know what the lowest-cost
network should look like.
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