## (solution) I only NEED #3 and #4 answered in Excel Tillman Chemicals, Inc.

I only NEED #3 and #4 answered in Excel

Tillman Chemicals, Inc. has five production facilities,labelledA through E, that provide chemicals to five different regions,labelled1 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 810 2 3770 4398 6597 2513 7225 570 3 4084 1885 4398 4398 4084 600 4 6283 4398 9425 6597 3142 360 5 5341 4084 2827 6597 2513 300 Capacity (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 CAPACITY, 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 #1 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

1

2

3

4

5

Capacity

(Tankers/yr)

Prod. Costs per

Tanker A

188

5

377

0

408

4

628

3

534

1 B 408

4

439

8

188

5

439

8

408

4

142

555

5 C D E 628

3

659

7

439

8

942

5

282

7 377

0

251

3

439

8

659

7

659

7 691

1

722

5

408

4

314

2

251

3 Demand

(Tankers/

yr)

810

570

600

360

300 150 600 240 314 235 526 230 290

00 00 00 00 00 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 CAPACITY, 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?

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Sep 13, 2020

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