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CRA is considering basing auditors in Toronto, Montreal, Vancouver and Edmonton

Operations Management Oct 30, 2020

CRA is considering basing auditors in Toronto, Montreal, Vancouver and Edmonton. The annual cost of basing auditors is $100,000. Furthermore, auditors are also required to make the following trips outside their base: 500 trips to cities in Ontario, 500 trips to cities in Quebec, 400 trips to cities in British Columbia and 300 trips to cities in Alberta. The cost of sending an auditor from one of these cities to a state is given in the following table. Define and solve the model that will determine an auditing plan with minimum total cost. You should present the value of decision variables and objective function in a table. Audit Cost ($) Ontario Quebec British Columbia Alberta Toronto 1,100 1,400 1,900 1,400 Montreal 1,200 1,000 1,500 1,200 Vancouver 1,900 1,700 1,100 1,400 Edmonton 1,300 1,400 1,500 1,050

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