Revenue/Ton Decision Variables Variables a !!"#$ SM SM%Chicago & '!# b ".('" SM SM%Dallas & '!# c # SM%O & '!# d +*$*+ SM SM%Denver & '!# e # SM%S0 & '!# 1 .#'+' M M%Sea2le & '!# g # M%Chicago & '!# h +''#. M M%Dallas & '!# i (+"$# M M%O & '!# 3 # M%Denver & '!# 4 ++.#, M M%56 & '!# l !+("# M M%S0 & '!# m # M M%Vancouver & '!# n # M%Calgar7 & '!# o # D8%Sea2le & '!# p # D8%Chicago & '!# 9 # D8%Dallas & '!# r # D8%O & '!# s # D8%Denver & '!# t ,$(..# D8 D8%56 & '!# u D8%S0 & '!# v *+!$, D8 D 8%Vancouver & '!# : $,.! D8 D8%Calgar7 & '!#
Prod Cos Cost & $()'' & ,"+)+. & ,""),$ & ,!,)'' & ,!,),, & .")"$ & ,+$)$+ & +#.),* & ,(!)#$ & ,"+)$* & ,.')." & ,,!).( & '+).+ & '')!# & !+)$# & ('),' & +,#).+ & +##)"+ & ,.+)$+ & ,!#),. & ,+.)$* & .+),' & $')(.
Ship Cos Cost & *(# & *(# & *(# & *( * (# & *(# & .,! & .,! & .,! & .,! & .,! & ., . ,! & .,! & .,! & .,! & .,! & .,! & .,! & .,! & .,! & .,! & .,! & .,! & ., . ,!
Proft Margin & +'#)+* & ,(')'" & ,(*)$+ & +#$)+* & +#$)$( & +$$)*+ & +# +#"),$ & ,*#)$' & ,*()(+ & ,'+),' & ,$')!. & +,()!, & +" +"+)!$ & +!')!# & +$+)+# & +*')$* & ,+.)!$ & ,*.)*$ & ,(+),$ & ,$.)$" & +,#),' & +(+)$* & +.')#"
& & & & & & & & & & & & & & & & & & & & & & &
Opmie ,!-#+"-(.()$. ,+-$.(-"!*)'" % .. -("+-!*')*" % ,,-'.+-.#$)". % *-"+!-"++).$ ,+-("'-'$!)"# % .. -+#,-#$*)!. ,,-"+!-+.()"# % % % % % % % *!-#,(-$'$).# % (-!.#-"(.)+* ++ -#,+-*#*)'#
Total Capacit7 ;< Total Capacit7 ;< Total Capacit7 ;< Total Operang 5evel =< Total Operang 5evel =< Total Operang 5evel =< Total Demand Total Demand Total Demand Total Demand Total Demand Total Demand Total Demand Total Demand Total Demand
< < < < < < < < <
,""*+# +'+*.# +"!#'' ,**#!" +,'*.# +"!#'' .#'+' !!"#$ (+"$# (+"$# +*$*+ +,,$., !+("# *+!$, $,.!
Ma: Profts & ,+*-!'.-,"'),!
Max Proft
SM M D8 SM M D8
,""*+# Total Capacit7 ;< +'+*.# Total Capacit7 ;< +"!#'' Total Capacit7 ;<
,+."#+!#$ ,""*+# +'+*.# +"!#''
,.+!"# Total Operang 5evel =< ,.+!"# +**.*.)+$" Total Operang 5evel =< +**.*.)+$" ++'+#$)$!' Total Operang 5evel =< ++'+#$)$!' .#'+' Total Demand < !!"#$ Total Demand < (+"$# Total Demand < (+"$# Total Demand < +*$*+ Total Demand < +,,$., Total Demand < !+("# Total Demand < *+!$, Total Demand < $,.! Total Demand <
.#'+' !!"#$ (+"$# (+"$# +*$*+ +,,$., !+("# *+!$, $,.!
Mirza Manufacturing Product Spruce Naomee Duschesne
Production Cost/tonn Magnets $0.25 $0.35 $0.15
Wire 4 3 2
Casing 2 1 2
2 3 1
Min Demand Mill A B C D
NA
Mill A B C D
NA
Mill A B C D
NA
Mill A B C D
NA
Magnet Wire Casing
EU 850 700 1,100 1,500
Asia 900 200 800 3,500
100 500 600 2,000
Ma Demand EU 2,550 2,100 3,300 4,500
Asia 2,700 600 2,400 10,500
300 1,500 1,800 6,000
Pac!aging and Shipping Cost/Unit EU $0.20 $0.18 $0.18 $0.17
Asia $0.25 $0.22 $0.22 $0.20
$0.35 $0.30 $0.30 $0.25
Unit Sales "e#enue EU $4.00 $3.70 $2.70 $6.80
A#aila$le "a% Material 120,000 50,000 40,000
Asia $4.50 $3.90 $2.90 $6.50
$4.55 $3.95 $2.40 $6.90
Route
Proft/Ton Tons Produced Total Proft Producon Cap SM M D8 Operang Level SM M D8 Demand Sea2le Chicago Dallas e> Orleans Denver 5os 6ngeles San 0rancisco Vancouver Calgar7
SM/Chicago NM/Chicago DU/Chicago
+'#)+* # #
+#"),$ +*')$* # !!"#$ # ,*++!+!#)"
, # #
# , #
# # ,
, # #
# , #
# # ,
,
, ,
Producon be1ore ?tonnes@ Producon aAer ?tonnes@ ,...," ,!#.,# Spruce ! +*".'+ +**.*. "#$%&! Naomee +*#,"" ++'+#$ "#$&(! Duche'ne & ,+,-!*'-$"' & ,+.-"#+-!#$ Proft )$*!
