Eastinghouse ships 12,000 resistors per month to its customers. The resistors can be produced at three different plants. The production capacity, fixed monthly cost of operation, and variable cost of producing a resistor at each plant are given below. ----------------------------------Plant 1----------Plant 2---------Plant 3 Fixed cost--------------------$80,000--------$40,000--------$30,000 Cost per unit------------------$20--------------$25--------------$30 Production capacity--------6000------------7000--------------6000

The fixed cost for a plant is incurred only if the plant is used to make any resistors. If a plant is used at all, at least 3000 resistors per month must be produced at the plant. Determine how to minimize the companys monthly costs of meeting its customers demands.

B C D E F G Plant 1 Plant 2 Plant 3 1 Producing and shipping resistors 2 3 Costs at plants 4 Fixed cost 5 Variable cost 6 7 Production capacities 8 Plant 1 Plant 2 Plant 3 Total produced Demand 9 10 Min production at any operating plant 11 12 13 Produce at least minimum 14 15 Lower bound 16 17 Units produced 18 19 Upper bound 20 21 Summary of costs 22 Fixed cost 23 Variable cost 24 Total cost 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40