Asked by Mckenna Grimm on Jun 24, 2024
Verified
What is the lowest cost solution for the adding a new plant?
Lowest Cost Solution
An approach or method that has the minimum possible cost among all the alternative approaches to achieve the same goal.
New Plant Addition
The establishment of an additional manufacturing or production facility to expand capacity or capabilities.
- Use linear programming models to identify cost-minimizing solutions in the context of supply chain networks.
Verified Answer
OV
Odalis VasquezJun 27, 2024
Final Answer :
Adding Plant A will result in the lowest possible supply chain configuration of $148,350.Of this amount $23,500 is the fixed cost and $124,850 the shipping cost.The assignments appear in the table.
Philadelphia Atlanta Dallas Los Angeles Capacity Plant 1 10030000400 Plant 2 000350350 Plant 3 250000250 A 0503500400 Total Demand 350350350350\begin{array} { | l | c | c | c | c | c | } \hline & \text { Philadelphia } & \text { Atlanta } & \text { Dallas } & \text { Los Angeles } & \text { Capacity } \\\hline \text { Plant 1 } & 100 & 300 & 0 & 0 & 400 \\\hline \text { Plant 2 } & 0 & 0 & 0 & 350 & 350 \\\hline \text { Plant 3 } & 250 & 0 & 0 & 0 & 250 \\\hline \text { A } & 0 & 50 & 350 & 0 & 400 \\\hline \text { Total Demand } & 350 & 350 & 350 & 350 & \\\hline\end{array} Plant 1 Plant 2 Plant 3 A Total Demand Philadelphia 10002500350 Atlanta 3000050350 Dallas 000350350 Los Angeles 035000350 Capacity 400350250400
Philadelphia Atlanta Dallas Los Angeles Capacity Plant 1 10030000400 Plant 2 000350350 Plant 3 250000250 A 0503500400 Total Demand 350350350350\begin{array} { | l | c | c | c | c | c | } \hline & \text { Philadelphia } & \text { Atlanta } & \text { Dallas } & \text { Los Angeles } & \text { Capacity } \\\hline \text { Plant 1 } & 100 & 300 & 0 & 0 & 400 \\\hline \text { Plant 2 } & 0 & 0 & 0 & 350 & 350 \\\hline \text { Plant 3 } & 250 & 0 & 0 & 0 & 250 \\\hline \text { A } & 0 & 50 & 350 & 0 & 400 \\\hline \text { Total Demand } & 350 & 350 & 350 & 350 & \\\hline\end{array} Plant 1 Plant 2 Plant 3 A Total Demand Philadelphia 10002500350 Atlanta 3000050350 Dallas 000350350 Los Angeles 035000350 Capacity 400350250400
Learning Objectives
- Use linear programming models to identify cost-minimizing solutions in the context of supply chain networks.
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