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ASA is a large steel company that produces each of five different types of iron plates at its eight factories. At a recent strategic-planning meeting,

ASA is a large steel company that produces each of five different types of iron plates at its eight factories. At a recent strategic-planning meeting, the management allocated the budgets in Table 1 to each of the eight factories for the next fiscal year. These budgets were based, in part, on the demands in Table 2 for the five iron plates, provided by the Sales Department. As vice president of production, you, Mr. Leroy Adams, have been asked to determine a production plan for each of the eight factories.

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Table 1. The Budget Assigned to Each Factory (in Thousands of Dollars) Factory 2 3 4 5 6 7 8 Budget 900 1050 950 1050 1000 1600 950 1050 Table 2. The Demand in Tons for Each Type of Iron Plate Plate Type 2 3 4 5 Demand 450 800 500 650 180The Table 3. The Cost of Producing One Ton of Each Iron Plate Type i at Factory j (in Thousands of Dollars) Factory 2 3 4 5 6 7 OO Plate Type 5 3 4 3 4 6 4 2 3 UI LA 3 7 6 UIDO N 4 3 AUIA A 4 6 W U 5 8 9 7 10 9 6Table 4. The Cost per Ton and the Amount of Each Plate Type Available from Each Subcontractor Subcontractor 1 Subcontracmrz Plate re Cost' Amount\" 5 4 20 30 20 -m ' Cost ($000) to purchase one ton of plate type 1' lion: a subcontractor. b For any subcontractor used, all of its available amounts of all ve types of iron plates must be purchased at the indicated costs

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