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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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