In the last sheet of the file Fixed Cost Manufacturing.xlsx, we illustrated one way to model the Great Threads problem with IF functions that didn’t work. Try a slightly different approach here. Eliminate the binary variables in row 14 altogether, and eliminate the upper bounds in row 18 and the corresponding upper bound constraints in the Solver dialog box. (The only constraints will now be the resource availability constraints.)

However, use IF functions to calculate the total fixed cost of renting equipment, so that if the amount of any clothing type is positive, its fixed cost is added to the total fixed cost. Is Solver able to handle this model? Does it depend on the initial values in the changing cells? (Don’t forget to use the GRG Nonlinear method.)