Ford has four automobile plants. Each is capable ofproducing the Taurus, Lincoln, or Escort, but it can onlyproduce one of these cars. The fixed cost of operating eachplant for a year and the variable cost of producing a car ofeach type at each plant are given in Table 51.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 ata single plant; that is, for example, if any Tauruses aremade at plant 1, then all Tauruses must be made there.c If plants 3 and 4 are used, then plant 1 must also beused.Each year, Ford must produce 500,000 of each type ofcar. Formulate an IP whose solution will tell Ford how tominimize the annual cost of producing cars. Variable Cost ($)Plant Fixed Cost ($) Taurus Lincoln Escort1 7 billion 12,000 16,000 19,0002 6 billion 15,000 18,000 11,0003 4 billion 17,000 19,000 12,0004 2 billion 19,000 22,000 14,000
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 51.
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.
c If plants 3 and 4 are used, then plant 1 must also be
used.Each year, Ford must produce 500,000 of each type of
car. Formulate an IP whose solution will tell Ford how to
minimize the annual cost of producing cars.
Variable Cost ($)
Plant Fixed Cost ($) Taurus Lincoln Escort
1 7 billion 12,000 16,000 19,000
2 6 billion 15,000 18,000 11,000
3 4 billion 17,000 19,000 12,000
4 2 billion 19,000 22,000 14,000
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