A manufacturer of home appliances in Europe wants to decide about the possible l

Question

A manufacturer of home appliances in Europe wants to decide about the possible local, on for us plants. The potential locations are France, Germany. Finland. U.K.. and Italy. The European market is divided into four regions: North, hast. South, and West. Plant Capacities (thousands of units per year), annual fixed costs (euros per year), regional demand (thousands of units per year), and variable production and shipping costs (euros per thousands of units) are as shown in the following table ("Midterm Exam 2.xlsx" on Blackboard). Find the location(s) that the manufacturer has to open its plants in order to minimize its total cost. Also calculate the amount of products that each plant has to ship to each demand region. Solve the previous problem by considering the single sourcing assumption (each demand region should be supplied by exactly one plant).

Explanation / Answer

Problem 1:

The final solution to the problem is given below.

Total minimum cost = 50*0+40*95+10*0+5*90+35*100+50*90+5*105+50*90+5*115 = 17850

100 110 105 100 0(50) 95(40) 105 110 105 0(10) 90(5) 100(35) 115 110 0 105 120 110 90(50) 0 110 105(5) 90(50) 115(5) 0

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