Goat for its agility in wide variety of harsh environments

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Reference no: EM132121825

Robin Scherbatsky owns a company that produces an all-terrain vehicle (ATV) nicknamed “The Goat” for its agility in a wide variety of harsh environments. The company currently has five plants that manufacture the ATV and four regional distribution centers. Robin is trying to tighten the belts at the company, so she is considering reducing its fixed operating costs by closing one or more plants, even though doing so would incur an increase in transportation costs. The relevant costs for the problem are provided in the following table. Formulate and solve an integer programming model for this problem to assist the company in determining which plants should remain open and which should be closed and the number of ATVs that should be shipped from each plant to each warehouse to minimize the total cost. Transportation Cost per Vehicle to Warehouse Annual Production Capacity Annual Fixed Operating Cost Plant A B C D 1 $56 $21 $32 $65 12,000 $2,100,000 2 $18 $46 $7 $35 18,000 $850,000 3 $12 $71 $41 $52 14,000 $1,800,000 4 $30 $24 $61 $28 10,000 $1,100,000 5 $45 $50 $26 $31 16,000 $900,000 Annual Demand 6,000 14,000 8,000 10,000.

Reference no: EM132121825

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