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Make sure to identify and define the decision variables, and formulate the objective function and constraints for each problem. You may use Excel to solve the mathematical problems. 1.  Sunchem, a manufacturer of printing inks, has five manufacturing plants worldwide. Their locations and capacities are shown in Table 1 along with the cost of producing 1 ton of ink at each facility. The major markets for the inks are North America, Europe, Japan, South America, and the rest of Asia. Demand at each market is shown in Table 1. Transportation costs from each plant to each market in U.S. dollars are shown in Table 1. Management must come up with a production plan for the next year. a. If no plant can run below 50 percent capacity, how much should each plant produce and which markets should each plant supply? b. If there are no limits on the minimum amount produced in a plant, how much should each plant produce?

Make sure to identify and define the decision variables, and formulate the objective function and constraints for each problem. You may use Excel to solve the mathematical problems. 1.  Sunchem, a manufacturer of printing inks, has five manufacturing plants worldwide. Their locations and capacities are shown in Table 1 along with the cost of producing 1 ton of ink at each facility. The major markets for the inks are North America, Europe, Japan, South America, and the rest of Asia. Demand at each market is shown in Table 1. Transportation costs from each plant to each market in U.S. dollars are shown in Table 1. Management must come up with a production plan for the next year. a. If no plant can run below 50 percent capacity, how much should each plant produce and which markets should each plant supply? b. If there are no limits on the minimum amount produced in a plant, how much should each plant produce?

Practical Management Science
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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Make sure to identify and define the decision variables, and formulate the objective function and constraints for each problem. You may use Excel to solve the mathematical problems.

1.  Sunchem, a manufacturer of printing inks, has five manufacturing plants worldwide. Their locations and capacities are shown in Table 1 along with the cost of producing 1 ton of ink at each facility. The major markets for the inks are North America, Europe, Japan, South America, and the rest of Asia. Demand at each market is shown in Table 1. Transportation costs from each plant to each market in U.S. dollars are shown in Table 1. Management must come up with a production plan for the next year.

a. If no plant can run below 50 percent capacity, how much should each plant produce and which markets should each plant supply?

b. If there are no limits on the minimum amount produced in a plant, how much should each plant produce?

US Germany Japan Brazil India Demand (ton/yr) Transportation costs from each plant to each market in U.S. Dollars N. S. America America 600 1,300 1,200 2,000 2,100 1,200 1,300 1,400 270 800 Europe 190 600 2,200 2,300 1,300 Japan 2,000 1,400 300 200 1,400 1,400 2,100 1,000 120 Rest of Asia 1,700 1,300 900 2,100 800 100 Capacity (ton/yr) 185 475 50 210 80 Production Cost per Ton $ $ $ $ 10,000 7,530 1,674 7,306 9,200
Transcribed Image Text:US Germany Japan Brazil India Demand (ton/yr) Transportation costs from each plant to each market in U.S. Dollars N. S. America America 600 1,300 1,200 2,000 2,100 1,200 1,300 1,400 270 800 Europe 190 600 2,200 2,300 1,300 Japan 2,000 1,400 300 200 1,400 1,400 2,100 1,000 120 Rest of Asia 1,700 1,300 900 2,100 800 100 Capacity (ton/yr) 185 475 50 210 80 Production Cost per Ton $ $ $ $ 10,000 7,530 1,674 7,306 9,200
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