Reference no: EM131644338

Question: In the last sheet of the finished version of the Fixed Cost Manufacturing file, we illustrated one way to model the Great Threads problem with IF functions, but saw that this approach doesn't work. Try a slightly different approach here. Eliminate the binary variables in row 14 altogether, and eliminate the upper bounds in row 18 and the corresponding upper bound constraints in the Solver dialog box. (The only constraints are now on resource availability.) However, use IF functions to calculate the total fixed cost of renting equipment, so that if the amount of any clothing type is positive, then its fixed cost is added to the total fixed cost. Is Solver able to handle this model? Does it depend on the initial values in the changing cells? (Don't forget to use Solver's nonlinear algorithm, not the simplex method.)