Maurice’s Pump Manufacturing Company currently maintains plantsin Atlanta and Tulsa that supply major distribution centers in LosAngeles and New York. Because of an expanding demand, Maurice hasdecided to open a third plant and has narrowed the choice to one oftwo cities—New Orleans or Houston. The pertinent production anddistribution costs, as well as the plant capacities anddistribution center demands, are shown in the following table.
| Plants | Distribution Centers |
| Location | Capacity | Production Cost (per unit) | LA | New York |
| Atlanta (existing) | 600 | $6 | $8 | $5 |
| Tulsa (existing) | 900 | $5 | $4 | $7 |
| New Orleans (Proposed) | 500 | $4 (anticipated) | $5 | $6 |
| Houston (Proposed) | 500 | $3 (anticipated) | $4 | $6 |
| Forecast Demand | | | 800 | Â Â Â Â Â Â Â 1,200 |
Help the company decide which of the two proposed plant shouldbe opened. Create a spreadsheet model of this situation and solveusing Solver. Clearly show the values of the decision variables andthe objective.
