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Aire-Co produces home dehumidifiers at two different plants in Atlanta and Phoenix. The per unit cost of production in Atlanta and Phoenix is $400 and $360, respectively. Each plant can produce a maximum of 300 units per month. Inventory holding costs are assessed at $30 per unit in beginning inventory each month. Aire-Co estimates the demand for its product to be 300, 400, and 500 units, respectively, over the next 3 months. Aire-Co wants to be able to meet this demand at minimum cost.
-Formulate an LP model for this problem.
-Implement your model in a spreadsheet and solve it.
-What is the optimal solution?
-How does the solution change if each plant is required to produce at least 50 units per month?
-How does the solution change if each plant is required to produce at least 100 units per month?
BioTron Medical, Inc. Brent Bush, CFO of a medical device distributor, BioTron Medical, Inc, was approached by Japanese customer, Numata, with a proposal
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