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##### Tillman Chemicals, Inc. has five production facilities, labelled A through E, that provide chemicals and

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Question;Tillman Chemicals, Inc. has five production facilities, labelled A through E, that provide chemicals to five different regions, labelled 1 through 5. The production and shipping costs related to satisfying regional demand are listed in the following table:Demand Regions A B C D E Demand(Tankers/yr)1 1885 4084 6283 3770 6911 8102 3770 4398 6597 2513 7225 5703 4084 1885 4398 4398 4084 6004 6283 4398 9425 6597 3142 3605 5341 4084 2827 6597 2513 300Capacity (Tankers/yr) 555 1425 150 600 240 Prod. Costs per Tanker 31400 23500 52600 23000 29000 Tillman needs a production plan for the coming fiscal year. Answer the following questions:1) If plants can produce however much they want to (infinite production capacity), how much should each plant produce, and what is the cost?2) If plants can produce as much as they want to UP TO THEIR STATED CAPCITY, how much should each plant produce, and what is the cost?3) If plants MUST produce at no less than 45% capacity, then what should each plant produce, and what is the cost?4) What do you observe about the relationship between constraints in your model and cost?Exercise #2Your company is choosing among several locations for its offices, each of which must serve multiple U.S. states. Your high-end products require regular servicing by repair technicians, who must report to the appropriate sales office. There are four potential sales office sites under consideration: San Diego, Dallas, Kansas City, and Seattle. The annual fixed cost of the San Diego office is $173,500, Dallas is $129,200, Kansas City is $142,000, and Seattle is $147,500. Repair technicians must make repair trips out of these offices, with costs per trip described in the following table:Travel CostsState San Diego Dallas Kansas City Seattle # of TripsWashington 225 325 275 100 40Oregon 225 325 275 150 35California 150 275 200 200 100Idaho 225 275 200 200 25Nevada 175 275 200 225 40Montana 250 250 200 200 25Wyoming 225 250 175 225 50Utah 225 225 175 275 30Arizona 150 275 175 325 50New Mexico 200 200 150 375 40N. Dakota 375 275 225 275 30S. Dakota 375 250 200 275 20Nebraska 325 175 200 325 30Kansas 325 150 150 375 40Oklahoma 325 100 200 375 55Colorado 225 225 175 325 65Each technician may make up to 25 repair calls each year. Answer the following:Assuming that, at most, 10 technicians are allowed at any one office, where should the offices be, and how many technicians should be at each office?Now assume that unlimited technicians are allowed at each office. Where should the offices be, and how many technicians should be at each office?How confident are you that the answer for #2 represents the best possible solutions? Explain your answer, and, if appropriate, suggest what might constitute a better solution.

Paper#39442 | Written in 18-Jul-2015

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