Input Data
Northeast Southeast Midwest South West
Kentucky 185 180 175 175 200 150 1,000 0.27
Pennsylvania 170 190 180 200 220 200 1,500 0.27
N. Carolina 180 180 185 185 215 200 1,500 0.22
California 220 220 195 195 175 200 1,500 0.27
Demand (‘000
units / month)
1,050 600 600 450 900
Sale price = $ 1,000
Northeast Southeast Midwest South West
Open (1) /
Shut (0)
Capacity
Constraint
Cost Revenue Profit
After Tax
Profit
Kentucky 0 600 0 400 0 1 0.00 328,000$ 1,000,000$ 672,000$ 490,560$
Pennsylvania 1,050 0 450 0 0 1 0.00 459,500$ 1,500,000$ 1,040,500$ 759,565$
N. Carolina 0 0 0 0 0 0 0.00 –$ –$ –$ –$
California 0 0 150 50 900 1 400.00 396,500$ 1,100,000$ 703,500$ 513,555$
Demand
Constraint
00000
Total Cost = 1,184,000$ Total Profit = 1,763,680$
Quantity Shipped
Tax Rate
Decision Variables and Constraints
Variable Production and Shipping Cost ($ / unit)
Annual
Fixed
Cost
(million $)
Capacity
‘000s units
Input Data
Northeast Southeast Midwest South West
Kentucky 185 180 175 175 200 150 1,000 0.27
Pennsylvania 170 190 180 200 220 200 1,500 0.27
N. Carolina 180 180 185 185 215 200 1,500 0.22
California 220 220 195 195 175 200 1,500 0.27
Demand (‘000
Units / Month)
1,050 600 600 450 900
Sale Price = $ 1,000
Northeast Southeast Midwest South West
Open (1) /
Shut (0)
Capacity
Constraint
Cost Revenue Profit
After Tax
Profit
Kentucky 0 0 100 0 900 1 0.00 347,500$ 1,000,000$ 652,500$ 476,325$
Pennsylvania 1,050 0 50 0 0 1 400.00 387,500$ 1,100,000$ 712,500$ 520,125$
N. Carolina 0 600 450 450 0 1 0.00 474,500$ 1,500,000$ 1,025,500$ 799,890$
California 0 0 0 0 0 0 0.00 –$ –$ –$ –$
Demand
Constraint
00000
Total Cost = 1,209,500$ Total Profit = 1,796,340$
Capacity
‘000s Units
Tax Rate
Decision Variables and Constraints
Quantity Shipped
Variable Production and Shipping Cost ($ / Unit)
Annual
Fixed
Cost
(million $)