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4. Production Planning with Fixed Costs (IP) Radford Castings can produce brake shoes on six different machines, two of which run on electricity (machines 1
4. Production Planning with Fixed Costs (IP) Radford Castings can produce brake shoes on six different machines, two of which run on electricity (machines 1 and 2) and four of which run on natural gas (machines 3 through 6). The table below summarizes the manufacturing costs associated with producing the brake shoes on each machine along with the available capacity on each machine. The fixed cost is a cost for starting up the machine and is incurred if any brake shoes are produced on that machine. Machine Fixed Cost Variable Cost Capacity $1000 $21 2 $950 $23 600 $875 $25 750 1 500 3 5 6 $850 $800 $700 $24 $20 $26 400 600 800 There are two additional restrictions. First, machine 1 and 2 rely on electric motors to operate. However, operating both machines would overload Radford Castings' electrical system. Therefore, at most one of these two machines can be operated during the production period. Second, machines 3-6 run on natural gas. There is only enough natural gas remaining to produce 1250 units in total across these four machines. The company has received an order for 1700 brake shoes. How many should be produced on each machine so as to minimize the cost of meeting this order? Set up a linear programming spreadsheet model (with binary variables if necessary), and solve it using Solver
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