The Martin-Beck Company operates a plant in St. Louis with an annual capacity of 30,000 units. Product is shipped to regionaldistribution centers located in Boston, Atlanta, and Houston. Because of an anticipated increase in demand, Martin-Beck plans toincrease capacity by constructing a new plant in one or more of the following cities: Detroit, Toledo, Denver, or Kansas City. Theestimated annual fixed cost and the annual capacity for the four proposed plants are as follows:Proposed PlantDetroitToledoDenverKansas CityDistribution CenterBostonAnnual Fixed CostAtlantaThe company's long-range planning group developed forecasts of the anticipated annual demand at the distribution centers asfollows:Houston$175,000$300,000$375,000$500,000Annual Capacity20,00030,00040,00010,000Annual Demand20,00030,00020,000 The shipping cost per unit from each plant to each distribution center is as follows:Plant SiteDetroitToledoDenverKansas CitySt. LouisBoston549108Distribution CentersAtlanta23744HoustonWhat is the optimal set of plants to open?34523(a) Develop a mixed-integer programming model that could be used to help Martin-Beck determine which new plant or plants toopen in order to satisfy anticipated demand. Solve the model and answer the following questions. What is the optimal cost?Detroit & Toledo(b) Using equation 12.1, find a second-best solution. What is the optimal set of plants to open?DenverWhat is the increase in cost versus the best solution from part (a)?

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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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A railroad is being proposed by the government to join two neighboring cities. The railroad will significantly reduce the travel time between the two cities. The only concern is that to set up the infrastructure for the railroad, approximately ten square miles of forests will need to be cleared. The forest is known for its flora and fauna and regularly attracts people from all over the country. Any construction activity in the forest would deprive future generations of this rich heritage. Thus the plan for the proposed railroad has been shelved because of the idea that the environment should be protected so that future generations may live in it, and have the choices as individuals have today. The above is an example of: Group of answer choices a. an aesthetic argument b. incentives c. an environmental impact statement d. externalities e. social fairness
The Candle Company plans to open a new retail store in Portland, Maine. The store will sell specialty candles for an average of $10 each. The average variable costs per candle are as follows: Wax $4 Other additives $2 Base $1 The company is negotiating its lease for the new location. The landlord has offered two leasing options: Option A) a lease of $2,500 per month; or Option B) a monthly lease cost of $2,000 plus 10% of the company's monthly sales revenue. The lease option that is more attractive for the company under its current sales expectations is option B, the fixed lease payment plus sales based commission because it results in the lowest total lease costs The indifference point is The company expects to sell approximately 400 candles per month. Requirement 2. At what level of sales (in units) would the company be indifferent between the two lease options? Show your proof. candles. Begin by selecting the equation to determine the indifference point. (Abbreviations used" FC =…
A flood control reservoir project and channel improvement project are proposed for reducing flood damages along a stream in an urban area. Estimated costs are as follows: Dam and reservoir project Channel improvement project Initial investment $1,500,000 $1,200,000 Annual maintenance $10,000/yr $5,000/yr Hydrologic, hydraulic and economic studies have been conducted to develop the following relationships for the river reach and flood plain: (a) annual exceedance probability versus peak discharge with and without the reservoir, (b) discharge versus stage with and without the channel improvement, and (c) stage versus damage Annual Peak discharge Stage (ft) exceedance (cfs) probability Without With Discharge reservoir reservoir (cfs) Without With Stage Damage project project (ft) million) 0.50 3,000 2,700 0 0 0 9 0.0 0.20 5,400 0.10 7,600 4,200 3,500 5,000 10. 7 10 0.2 10,000 15° 11 15 1.1 0.05 10,400 5,500 15,000 20 14 20 2.2 0.02 0.01 19,000 0.005 24,000 20,000 15,000 8,600 20,000 23 17…
A council has a brown-field sites designated for social housing. After allowing for roads and parks it has an area of 150000 m² for social housing. The housing association intends to build a mixture of flats, two-bedroom houses, three-bedroom houses, and shops (which include a living space) on this site. The housing association wishes to maximise the number of people that can be housed but has strict housing requirements: • there must be at least twice as many two-bedroom houses as three-bedroom houses; • at least 10% of the total housing units excluding shops (i.e. flats and houses) must be flats; • buildings containing the flats (i.e a "block") must have two storeys and every flat must have the same floor space; • shops must be provided at a rate of at least one per 1500 inhabitants. The average number of inhabitants per housing unit and the ground floor area of each are given in the following table. Housing type Flat Two-bedroom house Three-bedroom house Shop Average number of…
An auto compant currently maintains plants in Cincinnati and Tulsa to supply two distributioncenters in Boston and Phoenix. The production and distribution costs, distribution demands aswell as facility capacities are given in the table attached Using the northwest-corner method, determine the initial allocated quantity for eachshipping route as well as the overall cost.

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