A company sells seven types of boxes, ranging in volume from
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A company sells seven types of boxes, ranging in volume from

A company sells seven types of boxes, ranging in volume from 17 to 33 cubic feet. The demand and size of each box are given in Table 39. The variable cost (in dollars) of producing each box is equal to the box’s volume. A fixed cost of $1,000 is incurred to produce any of a particular box. If the company desires, demand for a box may be satisfied by a box of larger size. Formulate and solve (with LINDO, LINGO, or Excel Solver) an IP whose solution will minimize the cost of meeting the demand for boxes.

TABLE 39

 

Box

1

2

3

4

5

6

7

Size

33

30

26

24

19

18

17

Demand

400

300

500

700

200

400

200

Hint
StatisticsConsider the integer programming problem in packaging industry. Fixed cost of a particular box is $1000. Variable cost depends upon the size of the box....

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