Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Transcribed Image Text:Question 1: A Canadian company was able until now to meet the demand of its
customers from its factory located in the Quebec region. Strong sales growth,
however, is forecasted for next year in the two markets served by the company
(1:Eastern Quebec, 2: Western Quebec). The company, therefore, is considering
the construction of another plant for which two potential sites have been identified:
one in Rimouski and the other in Longueuil. The collected data are provided in
Table below.
Quebec plant
Rimouski platform
Longueuil platform
Potential market (ton)
Transportation costs
($ per ton)
Market 1 Market 2
600
400
200
700
700
1000
300
800
Production cost Capacity Fixed cost
($ per ton)
$3800
$3500
$3600
(ton)
1000
1000
1000
($1000)
$4000
$5900
$6200
Products sold can be grouped in a single family and the average sale price of the
products of this family is $50,000 per ton on both markets.
(a) Draw an activity graph that corresponds to this context.
(b) Propose an optimization model to solve this problem.
(c) Implement your model using the any solver; determine whether to build a new
plant and, if so, on which site?
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