Question
Big Electronics manufactures two LED television monitors, identified as Model A and Model B. Big Electronics possesses three manufacturing plants. Each model has its lowest
Big Electronics manufactures two LED television monitors, identified as Model A and Model B. Big Electronics possesses three manufacturing plants. Each model has its lowest possible production cost when produced at Plant 1. However, Plant 1 does not have the capacity to handle the total production of both models. As a result, at least some of the production must be routed to the other two manufacturing plants. The following table shows the minimum production requirements for next month, the plant capacities in units per month, and the production cost per unit at each plant:
Model | Production Cost per Unit | Minimum Production Requirements | ||
Plant 1 | Plant 2 | Plant 3 | ||
A | $30 | $55 | $40 | 70,000 |
B | $25 | $45 | $65 | 60,000 |
Production Capacity | 80,000 | 50,000 | 40,000 |
|
Big's objective is to determine the minimum cost production plan.
1. Develop the generic model.
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