### Fixed cost can be modeled by using binary integer variable

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State University must purchase 1700 computers from three vendors. Vendor 1 charges \$500 per computer plus a total delivery charge of \$5,000. Vendor 2 charges \$350 per computer plus a total delivery charge of \$4,000. Vendor 3 charges \$250 per computer plus a total delivery charge of \$6,000. Vendor 1 will sell the university at most +600 computers, vendor 2, at most 1100, and vendor 3, at most 700. The minimum order from a vendor is 200 computers. Determine how to minimize the cost of purchasing the needed computers. Each vendor must supply at least the minimum only if that vendor is used. Hence delivery charges are incurred only for those vendors used. Hint - A fixed cost can be modeled by using a binary integer variable - Solved using excel

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