1) You have been asked to design a network whereby 3 plants in Madrid, Milan, and Warsaw serve 5 customer cities-London, Stockholm, Paris, Rome, and Istanbul. The demands of each city are shown in the Question 1 tab, as are the production and distribution costs as well as the fixed cost associated with each installation. You must do the following
a) Insert the correct cost formulas for fixed, variable, and total cost (30 points)
b) Put in the necessary constraints (30 points)
c) Determine the lowest cost network that will fulfill customer demand and lowest total cost. (20 points)
Your answer should be on the Question 1 tab of the spreadsheet with the Solver model that allowed you to compute the lowest cost network after you have executed Solver so that the spreadsheet displays your answer to part c.
