Formulate this problem as an lp model in a spreadsheet

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Reference no: EM1388232

Aire-Co produces home dehumidifies 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. Current inventory is 20 units. Aire-Co estimates the demand for its product to be 300, 400, and 500 units, respectively, over the next three months. Aire-Co wants to be able to meet this demand at minimum cost.

Formulate this problem as an LP model in a spreadsheet and solve using Solver.

How many dehumidifiers should be built in Atlanta, next month? How many in Phoenix?

Reference no: EM1388232

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