1.Huawei decided to expand in Africa. Three possible factory sites are available:Nairobi, Cape Town, and Accra. Factory building costs and transport costs to major customerzones from each site are given below.Production Cost/unit60Factory SiteBuilding Cost (per million unit capacity)Cape TownNairobiAccra560,00075340,00045310,000Customer ZoneDemand/yrTransport Costs/unitCape TownNairobiAccra#1# 218 million1215 million#379 million26 million16#422Huawei has a building budget of 40 million USD next year. Huawei does not wish annuallogistics costs to exceed 40% of total production costs. Write a model that decides whichfactories will be built in what capacity while meeting annual demand and minimizing all costs.USE PARAMETERS BELOW!Parameters: TRC(ij): transport cost; D(j): demand for zone j; B(i): building cost per millioncapacity for site i; pr(i): production cost for site iVariables:Model:

Linear programming is a widely used decision making approach in operations management. It helps to…

Answered: 1. Huawei decided to expand in Africa.…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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