supply chain

You accept been asked to back in the division plan for Santa Insulators - the Brazilian's premiere commencement for porcelain insulators used in electrical verses. Santa Insulators operates two stocks (Plant 1 in Lorena, SP and Stock 2 in Sorocaba, SP). The stocks yield a rank of insulator types and sizes, but you accept unwandering that the most apt glide ace is merely each insulator. Because the insulators are perfectly slight, they are transported quickly from the stocks to the three DCs located in Sao Paulo, SP; Campinas, SP and Rio de Janeiro, RJ. Each DC has a opposed ask-for for insulators:

  • Sao Paulo, SP:  6,000 insulators per week
  • Campinas, SP:  550 insulators per week
  • Rio de Janeiro, RJ:  3,160 insulators per week

The absorb of transporting an insulator from each stock to each DC ($/insulator) is shown below  :

 $/insulatorSao Paulo, SPCampinas, SPRio de Janeiro, RJPlant 1 (Lorena, SP)1.902.492.50Plant 2 (Sorocaba, SP)1.010.865.27

The stocks accept their differences, but they accept the selfselfsame compatability of 5,000 insulators/week.

The Chief Financial Officer for Santa Insulators, Paulo Silva, believes that the designs are not including the absorb of general a formation verse at a stock. He tells you that to direct a formation verse of one issue mold absorbs $5,000 per week. So, if a stock is conceding twain Mold A and Mold B insulators, they run a $10,000 unwandering absorb. 

How should we prescribe the variables and constraints in the design to instrument the changes requested by the CFO? 

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