ABC Widget company managers reached a consensus that expanding capacity provides a more favorable longterm solution for customer service. In this regard, the Baltimore plant only has the option to increase its capacity by units at a cost of $ Conversely, the St Louis and Kansas City plants have the option to increase the capacity by either or units, with the relevant cost details outlined below.Option Increase the current capacity by units
Option Increase the current capacity by units
While all customer demands must be met, each plant can have at most one option to increase its
capacity. Construct a mathematical model to assist your manager in determining the optimal
capacity expansion choice. Document your algebraic formulation in a worksheet with an objective
function, decision variables, and constraints. pts
e Solve the model you developed in d and answer the following questions.
i Whats your new minimum total cost? pts
ii Create a row or column in excel to illustrate the demand fulfillment pts
iii. Createaroworcolumninexceltodemonstratethecapacityutilizationpts
iv Prepare a short statement to explain the results to your manager pts
