I have solved first two questions, I need solution to question 3 & 4 use solver for excel and give answers on word document. Use my excel provided in attachement. The important thing is you should...

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I have solved first two questions,
I need solution to question 3 & 4
use solver for excel and give answers on word document. Use my excel provided in attachement. The important thing is you should know how to build constraints in solver.


Lab Assessment 3 (15%) Location Decision model Managing a Merger at Lightning Networks After receiving regulatory approval from the European Union, Lightning Networks, a major wireless carrier, and SatTV, the largest satellite TV provider in Europe, completed their 50 billion euro merger in 2016. After initial scepticism when the deal was first announced, analysts had warmed to the idea of synergies in the merger. Lightning expected to benefit from the large customer base of SatTV and the company announced that it expected significant annual cost savings within three years of the merger. Simone Durand, senior VP of supply chain at Lightning, was charged with identifying some cost reduction opportunities. She decided to focus her initial attention on the distribution networks the two companies used to fulfill demand for installation and repair products. The merger offered an opportunity to combine the two distribution networks. The Current Distribution Network Any new installation or repair by Lightning or SatTV required a set of products for the technician to complete the job. Rather than carrying these products with technicians, both companies had decided to centralize product inventories in a few locations. Annual product demand for the two companies across six regions in Europe was as shown in Table 5-16. TABLE 5-16 Annual Demand in Europe for Lightning Networks (wireless) and SatTV (satellite) Zone Wireless Demand Satellite Demand Zone Wireless Demand Satellite Demand Northwest 200,000 120,000 Middle South 120,000 120,000 Southwest 100,000 100,000 Northeast 150,000 110,000 Middle North 220,000 100,000 Southeast 90,000 100,000 Lightning had served its product needs from three warehouses located in Madrid, Spain; Rotterdam, Nether­ lands; and Krakow, Poland. SatTV had served its product needs from three warehouses located in Toulouse, France; Munich, Germany; and Budapest, Hungary. Each facility was specialized to handle either wireless or satellite prod­ ucts because of the historical focus of the company it belonged to. The specialization, capacity, and annual fixed cost for each facility were as shown in Table 5-17. The capacity of each warehouse is given in terms of how much annual demand it can handle. From Table 5-17, observe that the Madrid warehouse can serve demand of up to 370,000 units. TABLE 5-17 Warehouse Specialization, Capacities, and Fixed Costs Location Specialization Capacity Fixed Cost (euro/year) Madrid Wireless 370,000 600,000 Rotterdam Wireless 420,000 650,000 Krakow Wireless 310,000 520,000 Toulouse Satellite 280,000 475,000 Munich Satellite 290,000 488,000 Budapest Satellite 250,000 425,000 The variable cost of shipping one unit (either wireless or satellite) from each warehouse location to each market is shown in Table 5-18. TABLE 5-18 Variable Distribution Cost per Unit in Euro Northwest Southwest Middle North Middle South Northeast Southeast Madrid 2.50 1.50 3.00 2.75 4.00 4.50 Rotterdam 1.75 3.00 1.50 3.00 2.50 3.50 Krakow 3.25 4.00 2.50 3.00 2.00 2.50 Toulouse 2.00 2.00 2.75 2.50 3.75 4.00 Munich 2.25 3.00 2.25 2.50 2.75 3.00 Budapest 3.50 3.75 2.50 2.50 2.50 2.00 The Network Options Simone had a short term and a long­term decision to make. In the short term, she had to decide whether to make all the warehouses flexible or not. Making all warehouses flexible required an investment equivalent to an additional annual cost of 200,000 euro. Flexible warehouses, however, could be used to serve demand for both wireless and satellite products. In the longer term, Simone had to decide whether to restructure the distribution network. She could choose to close some warehouses, leave others open as they were, or double the capacity of some warehouses. Dou­ bling the capacity of a warehouse would increase its annual fixed cost by 80 percent. Thus, if the capacity of the Madrid warehouse was doubled, its annual fixed cost would be 900,000 euro. Closing a warehouse would also incur some cost, thus reducing the annual fixed cost that could be saved. Simone's team estimated that closing a warehouse would save 80 percent of the annual fixed cost. Thus, closing the Madrid warehouse would still result in an annual cost of 100,000 euro because only 80 percent of the fixed cost is saved. Study Questions 1. What is the annual cost if Lightning uses the current network (with warehouses specialisations as in Table 5­17) optimally to meet European demand? 2. Should Simone make all warehouses flexible given the additional cost of 200,000 euro per year? 3. What supply chain network configuration do you recom­mend for the long term if demand is as in Table 5­16? Should any warehouses be closed? Should any warehouses see their capacity doubled? 4. What supply chain network configuration do you recommend for the long term if the Northeast and Southeast demand is expected to increase by 30 percent while all other demands remain as in Table 5­16? Should any warehouses be closed? Should any warehouses see their capacity doubled? Managing a Merger at Lightning Networks The Current Distribution Network The Network Options _EVSCRATCH ev_HiddenInfo OptimizeERROR:#REF!MACROSFORMAT3RISKOPT/obj FindThe10StartFALSEL.FORMULAMaxIter Stop TrialsFALSE1000BeforeCalcFALSESmartStop Stop MinutesFALSE5AfterCalcFALSESameSeed Stop ChangeFALSE1001TRUEEndTrialFALSESampleType Stop FormulaFALSEFinishFALSEMacroBeforeSim Pop. Size50MacroAfterSim UNUSEDUNUSEDSeedTRUE1 Up. Display3 PauseOnErrFALSE Gen.LogFALSE GraphFALSE #Chrom.2#Const.2 Meth+OtherOpsMut.+OpCross+OpDescr.TimeBlocksConst#RangesRangeMinMaxFlagsROFUNCEVALRISKOPTDEVEVALEVALTypeEntry M.Form.DescriptionLeftValLeftOpRef.RightOpRightValPenaltyFctROevaltimeROfuncROparam RECIPE0.10.501ERROR:#REF!0100False,False,False2102ERROR:#REF!220 RECIPE0.10.501ERROR:#REF!01True,False,False2106ERROR:#REF!50 optimal current Warehouse Capacity & Fixed Cost LocationCapacityAnnual Fixed Cost Madrid370000600000 Rotterdam420000650000 Krakow310000520000 Toulouse280000475000 Munich290000488000 Budapest250000425000 Regional Demand By Product NorthwestSouthwestMiddle NorthMiddle SouthNortheastSoutheast Wireless20000010000022000012000015000090000 Satellite120000100000100000120000110000100000 Distribution Cost NorthwestSouthwestMiddle NorthMiddle SouthNortheastSoutheast Madrid2.501.503.002.754.004.50 Rotterdam1.753.001.503.002.503.50 Krakow3.254.002.503.002.002.50 Toulouse2.002.002.752.503.754.00 Munich2.253.002.252.502.753.00 Budapest3.503.752.502.502.502.00 Distribution Quantity Variables WirelessDistribution Quantity Variables Satellite NorthwestSouthwestMiddle NorthMiddle SouthNortheastSoutheastCapacity ConstraintNorthwestSouthwestMiddle NorthMiddle SouthNortheastSoutheastCapacity Constraint Madrid0100000012000000220000Madrid Rotterdam2000000220000000420000Rotterdam Krakow000015000090000240000Krakow ToulouseToulouse12000010000006000000280000 MunichMunich001000006000000160000 BudapestBudapest0000110000100000210000 Demand Constraint20000010000022000012000015000090000Demand Constraint120000100000100000120000110000100000 Plant Fixed Cost (Wireless)1770000 Plant Fixed Cost (Satellite)1388000 Distribution Wireless1685000 Distribution Satellite1440000 Total Cost6283000 optimal flexible Warehouse Capacity & Fixed Cost LocationCapacityAnnual Fixed Cost Madrid370000600000 Rotterdam420000650000 Krakow310000520000 Toulouse280000475000 Munich290000488000 Budapest250000425000 Regional Demand By Product NorthwestSouthwestMiddle NorthMiddle SouthNortheastSoutheast DemandWireless20000010000022000012000015000090000 DemandSatellite120000100000100000120000110000100000 Distribution Cost NorthwestSouthwestMiddle NorthMiddle SouthNortheastSoutheast Madrid2.501.503.002.754.004.50 Rotterdam1.753.001.503.002.503.50 Krakow3.254.002.503.002.002.50 Toulouse2.002.002.752.503.754.00 Munich2.253.002.252.502.753.00 Budapest3.503.752.502.502.502.00 Distribution Quantity Variables WirelessDistribution Quantity Variables Satellite NorthwestSouthwestMiddle NorthMiddle SouthNortheastSoutheastNorthwestSouthwestMiddle NorthMiddle SouthNortheastSoutheastCapacity Constraint Madrid01000000000Madrid01000000000200000 Rotterdam00220000000Rotterdam1000000100000000420000 Krakow00001500000Krakow00001100000260000 Toulouse200000006000000Toulouse2000000000280000 Munich0006000000Munich0006000000120000 Budapest0000090000Budapest000600000100000250000 Wireless Demand Constraint20000010000022000012000015000090000Sat Demand Constraint120000100000100000120000110000100000 Plant Fixed Cost3158000 Distribution Wireless1660000 Distribution Satellite1235000 Total Cost6053000 Cost Savings230000 Annual Fixed Cost200000 Annual Savings30000 Total Savings90000 Sensitivity Report 1 Microsoft Excel 16.0 Sensitivity Report Worksheet: Lab Case 3 Report Created: 23/05/2022 3:46:17 PM Variable Cells FinalReducedObjectiveAllowableAllowable CellNameValueCostCoefficientIncreaseDecrease $B$26Madrid Northwest00.52.51E+300.5 $C$26Madrid Southwest10000001.50.51.5 $D$26Madrid Middle North01.2531E+301.25 $E$26Madrid Middle South00.252.751E+300.25 $F$26Madrid Northeast0241E+302 $G$26Madrid Southeast02.54.51E+302.5 $B$27Rotterdam Northwest001.751E+300 $C$27Rotterdam Southwest01.7531E+301.75 $D$27Rotterdam Middle North22000001.50.51.75 $E$27Rotterdam Middle South00.7531E+300.75 $F$27Rotterdam Northeast00.752.51E+300.75 $G$27Rotterdam Southeast01.753.51E+301.75 $B$28Krakow Northwest01.253.251E+301.25 $C$28Krakow Southwest02.541E+302.5 $D$28Krakow Middle North00.752.51E+300.75 $E$28Krakow Middle South00.531E+300.5 $F$28Krakow Northeast150000020.52 $G$28Krakow Southeast00.52.51E+300.5 $B$29Toulouse Northwest2000000202 $C$29Toulouse Southwest00.521E+300.5 $D$29Toulouse Middle North012.751E+301 $E$29Toulouse Middle South6000002.500.25 $F$29Toulouse Northeast01.753.751E+301.75 $G$29Toulouse Southeast0241E+302 $B$30Munich Northwest00.252.251E+300.25 $C$30Munich Southwest01.531E+301.5 $D$30Munich Middle North00.52.251E+300.5 $E$30Munich Middle South6000002.500 $F$30Munich Northeast00.752.751E+300.75 $G$30Munich Southeast0131E+301 $B$31Budapest Northwest01.53.51E+301.5 $C$31Budapest Southwest02.253.751E+302.25 $D$31Budapest Middle North00.752.51E+300.75 $E$31Budapest Middle South002.51E+300 $F$31Budapest Northeast00.52.51E+300.5 $G$31Budapest Southeast90000020.52 $K$26Madrid Northwest00.52.51E+300.5 $L$26Madrid Southwest10000001.50.51.5 $M$26Madrid Middle North01.2531E+301.25 $N$26Madrid Middle South00.252.751E+300.25 $O$26Madrid Northeast0241E+302 $P$26Madrid Southeast02.54.51E+302.5 $K$27Rotterdam Northwest10000001.7500.5 $L$27Rotterdam Southwest01.7531E+301.75 $M$27Rotterdam Middle North10000001.50.51.75 $N$27Rotterdam Middle South00.7531E+300.75 $O$27Rotterdam Northeast00.752.51E+300.75 $P$27Rotterdam Southeast01.753.51E+301.75 $K$28Krakow Northwest01.253.251E+301.25 $L$28Krakow Southwest02.541E+302.5 $M$28Krakow Middle North00.752.51E+300.75 $N$28Krakow Middle South00.531E+300.5 $O$28Krakow Northeast110000020.52 $P$28Krakow Southeast00.52.51E+300.5 $K$29Toulouse Northwest20000020.250 $L$29Toulouse Southwest00.521E+300.5 $M$29Toulouse Middle North012.751E+301 $N$29Toulouse Middle South002.51E+300 $O$29Toulouse Northeast01.753.751E+301.75 $P$29Toulouse Southeast0241E+302 $K$30Munich Northwest00.252.251E+300.25 $L$30Munich Southwest01.531E+301.5 $M$30Munich Middle North00.52.251E+300.5 $N$30Munich Middle South6000002.500 $O$30Munich Northeast00.752.751E+300.75 $P$30Munich Southeast0131E+301 $K$31Budapest Northwest01.53.51E+301.5 $L$31Budapest Southwest02.253.751E+302.25 $M$31Budapest Middle North00.752.51E+300.75 $N$31Budapest Middle South6000002.500.5 $O$31Budapest Northeast00.52.51E+300.5 $P$31Budapest Southeast100000020.52 Constraints FinalShadowConstraintAllowableAllowable CellNameValuePriceR.H. SideIncreaseDecrease $B$32Wireless Demand Constraint Northwest20000022000006000060000 $C$32Wireless Demand Constraint Southwest1000001.5100000170000100000 $D$32Wireless Demand Constraint Middle North2200001.752200006000020000 $E$32Wireless Demand Constraint Middle South1200002.512000017000060000 $F$32Wireless Demand Constraint Northeast150000215000050000150000 $G$32Wireless Demand Constraint Southeast900002900006000060000 $K$32Sat Demand Constraint Northwest12000021200006000020000 $L$32Sat Demand Constraint Southwest1000001.5100000170000100000 $M$32Sat Demand Constraint Middle North1000001.751000006000020000 $N$32Sat Demand Constraint Middle South1200002.512000017000060000 $O$32Sat Demand Constraint Northeast110000211000050000110000 $P$32Sat Demand Constraint Southeast10000021000006000060000 $R$26Madrid Capacity Constraint20000003700001E+30170000 $R$27Rotterdam Capacity Constraint420000-0.254200002000060000 $R$28Krakow Capacity Constraint26000003100001E+3050000 $R$29Toulouse Capacity Constraint28000002800006000060000 $R$30Munich Capacity Constraint12000002900001E+30170000 $R$31Budapest Capacity Constraint25000002500006000060000 1 2 3 4 5 6 7 8 9 10 A Warehouse Capacity & Fixed Cost Location Madrid Rotterdam Krakow Toulouse Munich Budapest Regional Demand By Product
Answered Same DayMay 23, 2022

Answer To: I have solved first two questions, I need solution to question 3 & 4 use solver for excel and give...

Dr Shweta answered on May 23 2022
79 Votes
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Ans 3. Here we believed that the warehouses are not flexible as it’s the case
of long-term demand and flexibility option is only mentioned in case of short-term demand. From the results we concluded that none of the warehouses should be closed and the capacity of none of the...
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