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 |
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