This preview shows page 1. Sign up to view the full content.
Unformatted text preview: that setup costs are $400 for product 1, $550 for product 2, and $600 for product 3. If the solution developed in part (b) is to be used, what is the total profit after taking into account the setup costs? d-(15 points) Management realized that the optimal product mix, taking setup costs into account, might be different from the one recommended in part (b). Formulate a mixed integer linear program that takes setup cost into account. Management has also stated that we should not consider making more than 175 units of product 1, 150 of product 2, or 140 units of product 3. Provide the formulation. e-(10 points) Solve the mixed integer linear program formulated in part (d) by using Excel. Include the computer output. How much of each product should be produced and what is the projected profit? Compare this profit to that obtained in part (c)....
View Full Document
- Spring '08