XYZ Corporation has a one-year contract to supply motors for all refrigerators produced by the IA Corporation. IA manufactures the refrigerators at four locations around the country: Boston, Dallas, Los Angeles, and St. Paul. Plans call for the following number (in thousands) of refrigerators to be produced at cach location: Boston 100
XYZ Corporation has a one-year contract to supply motors for all refrigerators produced by the IA Corporation. IA manufactures the refrigerators at four locations around the country: Boston, Dallas, Los Angeles, and St. Paul. Plans call for the following number (in thousands) of refrigerators to be produced at cach location: Boston 100
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter6: Optimization Models With Integer Variables
Section: Chapter Questions
Problem 100P
Related questions
Question
100%
Can i get help with those questions please and thank you
![XYZ Corporation has a one-year contract to supply motors for all refrigerators produced by the IA
Corporation. IA manufactures the refrigerators at four locations around the country: Boston, Dallas, Los
Angeles, and St. Paul. Plans call for the following number (in thousands) of refrigerators to be produced
at cach location:
Boston
100
Dallas
80
Los Angeles
100
St. Paul
70
XYZ's three plants are capable of producing the motors. The plants and production capacities (in
thousands) are as follows:
Denver
80
Atlanta
200
Chicago
Because of varying production and transportation costs, the profit that XYZ earns on cach lot of 1000
units depends on which plant produced the lot and which destination it was shipped to. The following
table gives the accounting department estimates of the profit per unit (shipments will be made in lots of
1000 units):
150
Shipped To
Produced At
Boston
Dallas
Los Angeles
St. Paul
Denver
18
13
10
Atlanta
20
17
13
Chicago
7
11
15
16
With profit maximization as a criterion, XYZ's management wants to determine how many motors should
be produced at each plant and how many motors should be shipped from cach plant to each destination.
1. |Find the optimal solution and the maximum profit.
2. In which plant there will be idle capacity and how many units (in thousands)?
3. Do alternative optimal solutions exist? Justify your answer.
4. If they exist, use the stepping stone algorithm and find the second optimal solution. Present your
analysis in a graphically neat manner. Use any drawing technique you like – just make sure it looks fairly
professional.
5. Produce the third optimal solution by taking a combination of 20% of the first optimal solution and
80% of the second one.
Attach all relevant exhibits from Excel's Solver calculations. Use PrintScreen, edit/copy/paste, etc. –
whatever you like.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84393282-b929-4c46-8d27-d18c726dd70f%2F158d51e3-ad27-4c1c-8d3d-94f69604832e%2F0lmam3j_processed.png&w=3840&q=75)
Transcribed Image Text:XYZ Corporation has a one-year contract to supply motors for all refrigerators produced by the IA
Corporation. IA manufactures the refrigerators at four locations around the country: Boston, Dallas, Los
Angeles, and St. Paul. Plans call for the following number (in thousands) of refrigerators to be produced
at cach location:
Boston
100
Dallas
80
Los Angeles
100
St. Paul
70
XYZ's three plants are capable of producing the motors. The plants and production capacities (in
thousands) are as follows:
Denver
80
Atlanta
200
Chicago
Because of varying production and transportation costs, the profit that XYZ earns on cach lot of 1000
units depends on which plant produced the lot and which destination it was shipped to. The following
table gives the accounting department estimates of the profit per unit (shipments will be made in lots of
1000 units):
150
Shipped To
Produced At
Boston
Dallas
Los Angeles
St. Paul
Denver
18
13
10
Atlanta
20
17
13
Chicago
7
11
15
16
With profit maximization as a criterion, XYZ's management wants to determine how many motors should
be produced at each plant and how many motors should be shipped from cach plant to each destination.
1. |Find the optimal solution and the maximum profit.
2. In which plant there will be idle capacity and how many units (in thousands)?
3. Do alternative optimal solutions exist? Justify your answer.
4. If they exist, use the stepping stone algorithm and find the second optimal solution. Present your
analysis in a graphically neat manner. Use any drawing technique you like – just make sure it looks fairly
professional.
5. Produce the third optimal solution by taking a combination of 20% of the first optimal solution and
80% of the second one.
Attach all relevant exhibits from Excel's Solver calculations. Use PrintScreen, edit/copy/paste, etc. –
whatever you like.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 15 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Practical Management Science](https://www.bartleby.com/isbn_cover_images/9781337406659/9781337406659_smallCoverImage.gif)
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
![Practical Management Science](https://www.bartleby.com/isbn_cover_images/9781337406659/9781337406659_smallCoverImage.gif)
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,