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Three types of appliances, A, B, and C, can be manufactured on one of two machines, 1 and 2. The variable costs (that is,
Three types of appliances, A, B, and C, can be manufactured on one of two machines, 1 and 2. The variable costs (that is, per unit cost) of each appliance on each machine are A C $13 $10 $11 $7 1 2 There is an initial setup cost (fixed cost) to make each appliance on each machine. (Each fixed cost is incurred at most once, and it is incurred only if one or more of that appliance type is made on that machine): 1 2 B $8 $12 A $52 $64 B $90 $60 C $60 $75 The time (in hours) required to make each appliance on each machine: A C 0.4 0.9 0.5 1.3 B 1.1 1.2 112 We have to make 4 of appliance A, 9 of appliance B, and 5 of appliance C for a customer order. We can use Machine 1 for up to 10 hours and Machine 2 for up to 7 hours. Formulate an ILP problem that models this situation. Set it up in Excel and use solver to find the optimal solution. What is the minimum cost to make the necessary numbers of appliances?
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