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Acobe Manufacturing is planning to build a new plant and has three locations under consideration: Site A, Site B and Site C. The total production
Acobe Manufacturing is planning to build a new plant and has three locations under consideration: Site A, Site B and Site C. The total production required is at least 45,000 units.
Relevant data for each Site is found in the following table:
SITE | A | B | C |
Annual Fixed Cost | $350,000 | $300,000 | $290,000 |
Variable cost per unit | $35 | $31 | $37 |
Annual Capacity | 25,000 units | 22,000 units | 20,000 units |
- Write the integer programming formulation to determine which Site(s) should be chosen and how many units to produce at the chosen site(s).
Thank you!
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