
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Please help me solve these using solver in excel

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PC...
Assignment 8.2
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Dana Johnson Corp has four plants in Decatur, Minneapolis, Carbondale, and E. St. Louis with different production capacities. Note that production capacity is
the maximum amount the plant can produce, but the plant does not necessarily have to produce that many. The finished goods are shipped from four plants
to three warehouses in Blue Earth, Ciro, and Des Moines according to the demands expected at these warehouses. The table below shows the production
capacities and estimated demands for next quarter, along with the shipping costs per unit for each shipping lane. The warehouse demand should be met, but
the warehouse can receive more than demanded, given their available space for storage.
Plan the shipping quantities on each shipping lane between plants and warehouses, so that the total shipping cost is lowest between the plants and
warehouses. (Solver is required)
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Warehouses (To)
Plants (From)
Decatur
Minneapolis Carbondale E. St. Louis Demand
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Blue Earth
$20
$17
$21
$29
250
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Ciro
$25
$27
$20
$30
200
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Des Moines
$22
$25
$22
$30
350
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Capacity
300
200
150
150
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Ready
Problem 1-A
Problem 1-B
Accessibility: Investigate
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A
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100%

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Assignment 8.2
Tell me
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I U
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% 9
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(Continued from Problem 1-A) Dana Johnson Corp was just notified that
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-- the estimated demands should be revised to: 250 units, 240 units, and 375 units for Blue Earth, Ciro and DesMoines, respectively (according to the new data from market research);
-- The production capacities at four plants provided in Problem 1-A are for regular-hour (i.e., regular-time, RT) production. Production using overtime (OT) hours will be available only at
the Decatur plant with OT production cost = $65 per unit and OT capacity = 40 units, and at the Minneapolis plant with OT production cost = $70 per unit and OT capacity = 50 units;
-- the shipment from Decatur to Des Moines will not be available next quarter due to disagreement over the contract between the management and the carrier.
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The manager considers that in Problem 1-A, how you plan the shipping schedule will have an impact on not only the shipping quantities, but also next quarter's production at each plant.
So, he would like to evaluate shipping costs together with production costs when designing the plan. The table below shows the production cost per unit at each plant. The shipping
costs per unit for each shipping lane are provided already in Problem 1-A. As previously stated, the warehouse demands should be met, but the warehouse can receive more than
demanded, given their available space for storage.
Should OT prduction be considered in your plan? If your answer is yes, how can it be incorporated into the optimal plan where the total shipping and production cost is the lowest? You
need to create the template to use Solver. Then, summarize your plan into Tables 2 and 3 below.
$50
18 TABLE 1
20 Decatur
21 RT
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121992222222222222≈≈≈33333327734444455
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Production cost per unit
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TABLE 2
TABLE 3
E. St. Louis
Warehouses (To)
Shipping quantities for each shipping lane
Plants (From)
Decatur
Production RT/OT quantities at each plant
Minneapolis Carbondale E. St. Louis
Decatur
Minneapolis Carbondale
E. St. Louis
RT
Blue Earth
$70
$40
Ciro
RT
OT
Des Moines
Minneapolis Minneapolis Carbondale
Decatur
от
RT
$65
Ready
от
$60
RT
$70
Problem 1-A
Problem 1-B
Accessibility: Investigate
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