An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin

Exercise 6

An automobile manufacturer has five outdated plants: one each in Management is considering modernize each these plants to manufacture engine blocks and transmissions for a new model car. The cost to plant and the manufacturing capacity after modernization are as follows:
The projected needs are for total capacities of 900, 000 engine blocks and 900,000 transmissions. Management wants to determine which plants to meet projected manufacturing needs and at the same time, minimize the total cost of modernization.
a. Develop a table that lists every possible option available to management. As part of your table, indicate the total engine block capacity and transmission capacity for each possible option, whether the option is feasible based on the projected needs, and the total modernization cost for each option.
b. Based on your analysis in part (a), what recommendation would you provide management?
c. Formulate a 0-1 integer programming model that could be used to determine the optimal solution to the modernization question facing management.
d. Solve the model formulated in part (c) to provide a recommendation for management.