Math Solutions

(Solved) An automobile manufacturer has five outdated plants: one each in Michigan, Ohio, Illinois, New York, and California. Management is considering

Question: An automobile manufacturer has five outdated plants: one each in Michigan, Ohio, Illinois, New York, and California. Management is considering either closing or modernizing these plants to manufacture engine blocks and transmissions for a new model car. The cost to modernize each plant and manufacturing capacity after modernization is as follows:

Plant Cost
($ millions) 		Engine Blocks
(Thousands) 		Transmissions
(Thousands)
Michigan 25 500 300
Ohio 35 800 400
Illinois 35 400 800
New York 40 900 600
California 20 200 300

The projected needs are for total capacity of at least 1.2 million Engine blocks and 1.2 million Transmissions.

  1. Develop a mathematical model to decide which plant to close and which one to modernize so as to meet projected needs at least cost of modernization. The company has additional guideline that either Michigan Plant or Ohio Plant will be modernized and not both. (Hint; For each plant you have to make a YES or NO decision).
  1. Use SOLVER to solve your model developed in part (a). Which plants will you close?
    Price: $2.99
    Solution: The downloadable solution consists of 2 pages
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