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Heart Start Produces Automated External Defibrillators (AEDs)in Each of Two

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Heart Start produces automated external defibrillators (AEDs)in each of two different plants (A and B).The unit production costs and monthly production capacity of the two plants are indicated in the table below.The AEDs are sold through three wholesalers.The shipping cost from each plant to the warehouse of each wholesaler along with the monthly demand from each wholesaler are also indicated in the table.How many AEDs should be produced in each plant,and how should they be distributed to each of the three wholesaler warehouses so as to minimize the combined cost of production and shipping? Heart Start produces automated external defibrillators (AEDs)in each of two different plants (A and B).The unit production costs and monthly production capacity of the two plants are indicated in the table below.The AEDs are sold through three wholesalers.The shipping cost from each plant to the warehouse of each wholesaler along with the monthly demand from each wholesaler are also indicated in the table.How many AEDs should be produced in each plant,and how should they be distributed to each of the three wholesaler warehouses so as to minimize the combined cost of production and shipping?   (a)Formulate this problem as a transportation problem by constructing the appropriate parameter table.(b)Formulate and solve a linear programming model in a spreadsheet for this problem. (a)Formulate this problem as a transportation problem by constructing the appropriate parameter table.(b)Formulate and solve a linear programming model in a spreadsheet for this problem.


Definitions:

Cannibalization Effects

The reduction in sales volume, revenue, or market share of one product as a result of the introduction of a new product by the same company.

Strategic Marketing Process

A systematic approach to planning, executing, and managing marketing strategies to achieve business objectives.

Implementation Phase

The stage in a project or plan where strategies are executed and the theoretical models are turned into practical actions.

Time-Based Agenda

A plan or schedule that allocates specific tasks or events to particular times, emphasizing efficiency and punctuality.

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