Floyd’s Fabrication has just received an order from Gimbal Plumbing Fixtures for 100,000 specially designed three-inch-diameter casings to be delivered in one week. The contract price was negotiated upfront; hence, Floyd’s maximum profit will be obtained when its costs are minimized. Floyd’s has three production facilities capable of producing the casings. Production costs do not vary between locations, but the changeover (setup) costs do vary, as does the cost of transporting the finished items to Gimbal. The following table details these costs.

Formulate and solve this problem as a mixed-integer linear programming model.

Maximum Transportation Cost Changcover Cost Weekly Production Location (per 1000) Springfield Oak Ridge $1200 $224 65,000 SI100 $280 50,000 Westchester S1000 S245 55,000