How to minimize the cost of meeting air conditioner demands

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Reference no: EM131482035

During the next three months Airco must meet (on time) the following demands for air conditioners: month 1, 300; month 2, 400: month 3, 500. Air conditioners can be produced in either New York or Los Angeles. It takes 1.5 hours of skilled labor to produce an air conditioner in Los Angeles, and 2 hours in New York. It costs $400 to produce an air conditioner in Los Angeles, and $350 in New York. During each month, each city has 420 hours of skilled labor available. It costs $100 to hold an air conditioner in inventory for a month. At the beginning of month 1, Airco has 200 air conditioners in stock. Formulate an LP whose solution will tell Airco how to minimize the cost of meeting air conditioner demands for the next three months.

Reference no: EM131482035

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