Help me please 7. Hansen Controls has been awarded a contract for a large number of control panels. To meetthis demand, it will use its existing plants in San Diego and Houston, and consider new plantsin Tulsa, St. Louis, and Portland. Finished control panels are to be shipped to Seattle, Denver,and Kansas City. Pertinent information is given in the table.Shipping Cost to DestinationSourcesConstruction CostSeattleDenver Kansas CityСараcitySan Diego782,500Houston1082,500Tulsa350,0004310,000St. Louis200,00012610,000Portland480,0004101110,000Demand3,0008,0009,000a) Develop an optimization model (i.e., show the formulated mathematical model) whosesolution would reveal which plants to build and the optimal shipping schedule.b) Solve the model using Microsoft Excel Solver Add-in and provide your recommendation.

For solving the above problem, the nodes should be defined as follows: 1=San…

Answered: a) Develop an optimization model (i.e.,…

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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4 A local authority operates over a large geographical area. The Education Department is responsible for ensuring that stocks of a certain item are kept for distribution to schools through the area on request. In order to try to ensure supplies reach the schools promptly, the department currently operates two store warehouses, which operate independently of each other. The department is trying to assess the pros and cons of merging the two store warehouses and offering a centralised facility. For one item under consideration demand is 250 items per annum via Store A and 100 items per annum via Store B. Order costs are £10 at Store A and £11 at Store B, with holding costs 20 per cent of stock value. The item costs £4 per unit. (a) Calculate the impact on costs if the two stores merge and place combined orders for this item. (b) What other factors would you want to take into account before making a decision as to whether or not to merge the two stores?
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a) Develop an optimization model (i.e., show the formulated mathematical model) whose solution would reveal which plants to build and the optimal shipping schedule.