Reference no: EM13882550

Ford has four automobile plants. Each is capable of producing the Taurus, Lincoln, or Escort, but it can only produce one of these cars. The fixed cost of operating each plant for a year and the variable cost of producing a car of each type at each plant are given in Table.

		Variable Cost ($)
Plant	Fixed Cost ($)	Taurus	Lincoln	Escort
1	70 billion	12,000	16,000	9,000
2	60 billion	15,000	18,000	11,000
3	40 billion	17,000	19,000	12,000
4	20 billion	19,000	22,000	14,000

Ford faces the following restrictions:

a. Each plant can produce only one type of car.

b. The total production of each type of car must be at a single plant; that is, for example, if any Tauruses are made at plant 1, then all Tauruses must be made there.

Each year, Ford must produce 5000000 of each type of car. Formulate an IP whose solution will tell Ford how to minimize the annual cost of producing cars.