Hansen Controls Has Been Awarded a Contract for a Large

Essay

Hansen Controls has been awarded a contract for a large number of control panels. To meet this demand, it will use its existing plants in San Diego and Houston, and consider new plants in Tulsa, St. Louis, and Portland. Finished control panels are to be shipped to Seattle, Denver, and Kansas City. Pertinent information is given in the table. $\begin{array}{l|c|rcc|c}&&&(\text { Shipping Cost to Destination: }&\\&\text { Construction }&&&\text { Kansas }\\\text { Sources } & \text { Cost } & \text { Seattle } & \text {Denver } & \text { City } & \text { Capacity }\\\hline \text { San Diego } & \cdots & 5 & 7 & 8 & 2,500 \\\text { Houston } & \cdots & 10 & 8 & 6 & 2,500 \\\text { Tulsa } & 350,000 & 9 & 4 & 3 & 10,000 \\\text { St. Louis } & 200,000 & 12 & 6 & 2 & 10,000 \\\text { Portl and } & 480,000 & 4 & 10 & 11 & 10,000\\\hline&\text { Demand }& 3,000 & 8,000 & 9,000\\\end{array}$ Develop a model whose solution would reveal which plants to build and the optimal shipping schedule.