16 Eastinghouse ships 12,000 capacitors per month to their customers. The capacitors may be produced at three different plants. The production capacity, fixed monthly cost of operation, and variable cost of producing a capacitor at each plant are given in Table 96. The fixed cost for a plant is incurred only if the plant is used to make any capacitors.

Formulate an integer programming model whose solution will tell Eastinghouse how to minimize their monthly costs of meeting their customers’ demands.

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TABLE 96 Fixed Cost Plant (in $ Thousands) Variable Cost ($) Production Capacity 123 80 20 40 25 30 30 222 6,000 7,000 6,000