DryIce, Inc. is a manufacturer of air conditioners that has seen its demand grow significantly. The company anticipates nationwide demand for the year 2010 to be 180,000 units in the South; 120,000 units in the Midwest; 110,000 units in the East; and 100,000 units in the West. Managers at DryIce are designing the manufacturing network and have selected four potential sites – New York, Atlanta, Chicago, and San Diego. Plants could have a capacity of either 200,000 or 400,000 units. The annual fixed costs at the four locations are shown in the table below, along with the cost of producing and shipping an air conditioner to each of the four markets. Where should DryIce build its factories and how large should they be? New York Atlanta Chicago San Diego Annual fixed cost of 200,00 plant $6 miilion 5.5 million 5.6 million 6.1 million Annual fixed cost of 400,000 $10 million $9.2 million 9.3 million 10.2 million EAST $211 $232 $238 $299 SOUTH $232 $212 $230 $280 MIDWEST $240 $230 $215 $270 WEST $300 $280 $270 $225

DryIce, Inc. is a manufacturer of air conditioners that has seen its demand grow significantly. The company anticipates nationwide demand for the year 2010 to be 180,000 units in the South; 120,000 units in the Midwest; 110,000 units in the East; and 100,000 units in the West. Managers at DryIce are designing the manufacturing network and have selected four potential sites – New York, Atlanta, Chicago, and San Diego. Plants could have a capacity of either 200,000 or 400,000 units. The annual fixed costs at the four locations are shown in the table below, along with the cost of producing and shipping an air conditioner to each of the four markets. Where should DryIce build its factories and how large should they be? New York Atlanta Chicago San Diego Annual fixed cost of 200,00 plant $6 miilion 5.5 million 5.6 million 6.1 million Annual fixed cost of 400,000 $10 million $9.2 million 9.3 million 10.2 million EAST $211 $232 $238 $299 SOUTH $232 $212 $230 $280 MIDWEST $240 $230 $215 $270 WEST $300 $280 $270 $225

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section: Chapter Questions

Problem 100P

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bartleby, a Learneo, Inc. business

	New York	Atlanta	Chicago	San Diego
Annual fixed cost of 200,00 plant	$6 miilion	5.5 million	5.6 million	6.1 million
Annual fixed cost of 400,000	$10 million	$9.2 million	9.3 million	10.2 million
EAST	$211	$232	$238	$299
SOUTH	$232	$212	$230	$280
MIDWEST	$240	$230	$215	$270
WEST	$300	$280	$270	$225