Try Magic Notes and save time.Try it free
Try Magic Notes and save timeCrush your year with the magic of personalized studying.Try it free
Question

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. TABLE 51:

PlantFixed Cost ($)Variable Cost ($)  TaurusLincolnEscort17 billion12,00016,0009,00026 billion15,00018,00011,00034 billion17,00019,00012,00042 billion19,00022,00014,000\begin{matrix} \text{Plant} & \text{Fixed Cost (\$)} & \text{Variable Cost (\$)}\\ \text{ } & \text{ } & \text{Taurus} & \text{Lincoln} & \text{Escort}\\ \text{1} & \text{7 billion} & \text{12,000} & \text{16,000} & \text{9,000}\\ \text{2} & \text{6 billion} & \text{15,000} & \text{18,000} & \text{11,000}\\ \text{3} & \text{4 billion} & \text{17,000} & \text{19,000} & \text{12,000}\\ \text{4} & \text{2 billion} & \text{19,000} & \text{22,000} & \text{14,000}\\ \end{matrix}

Solution

Verified
Answered 1 year ago
Answered 1 year ago
Step 1
1 of 12

The company has four plants and three types of cars to manufacture. The goal is to determine which plant to operate and what type of car a plant must manufacture such that the total cost is minimum.

To do this, we must formulate an Integer Programming model that satisfies the conditions. The following steps will show how to form each part of the IP model.

Create an account to view solutions

Create an account to view solutions

Recommended textbook solutions

Introduction to Operations Research 10th Edition by Frederick S. Hillier

Introduction to Operations Research

10th EditionISBN: 9780073523453Frederick S. Hillier
Verified solutions
Operations Research: Applications and Algorithms 4th Edition by Wayne L Winston

Operations Research: Applications and Algorithms

4th EditionISBN: 9780534380588 (7 more)Wayne L Winston
1,445 solutions
Applied Linear Regression 4th Edition by Sanford Weisberg

Applied Linear Regression

4th EditionISBN: 9781118789551Sanford Weisberg
A Mathematical Look at Politics 1st Edition by Daniel H. Ullman, E. Arthur Robinson Jr.

A Mathematical Look at Politics

1st EditionISBN: 9781439819838Daniel H. Ullman, E. Arthur Robinson Jr.

More related questions

1/4

1/7