Inputs - Costs, Capacities, Demands

Fixed Low Fixed Supply Region N. America S. America Europe Asia Africa Cost ($) Capacity Cost ($)N. America 81 92 101 130 115 6,000 10 9,000 S. America 117 77 108 98 100 4,500 10 6,750 Europe 102 105 95 119 111 6,500 10 9,750 Asia 115 125 90 59 74 4,100 10 6,150 Africa 142 100 103 105 71 4,000 10 6,000 Demand 12 8 14 16 7

Decision VariablesDemand Region - Production Allocation (Million Units) Plants Plants Total

Supply Region N. America S. America Europe Asia Africa (1=open) (1=open) PlantsN. America 0 0 0 0 0 0 0 0S. America 0 0 0 0 0 0 0 0Europe 0 0 0 0 0 0 0 0Asia 0 0 0 0 0 0 0 0Africa 0 0 0 0 0 0 0 0

ConstraintsSupply Region Excess CapacityN. America 0S. America 0Europe 0Asia 0Africa 0

N. America S. America Europe Asia AfricaUnmet Demand 12 8 14 16 7

Objective FunctionCost = $ -

Demand RegionProduction and Transportation Cost per 1,000,000 Units

Obtaining Figure 5-71. Using Data | Analysis | Solver, solve the problem to obtain Figure 5-7.

Some alternative scenarios to try1. What if a plant must be built in North America? In this case add the constraint I14 ≥ 1 in Solver and rerun.2. What if plants must be built in every market? In this case, we need to addconstraints I14:18 ≥ 1 in Solver and rerun.

HighCapacity

2020202020

Obtaining Figure 5-71. Using Data | Analysis | Solver, solve the problem to obtain Figure 5-7.

Some alternative scenarios to try1. What if a plant must be built in North America? In this case add the constraint I14 ≥ 1 in Solver and rerun.2. What if plants must be built in every market? In this case, we need to addconstraints I14:18 ≥ 1 in Solver and rerun.