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The great co. has contracted to produce 500 of their product next week for one of its customers. The company has three machines that can produce the products, but at different variable and fixed costs. These costs and weekly production limits are shown in the table below. The fixed cost is incurred only if the machine is set up to produce the products.
Machine 1: per unit production cost 1.12 and fixed set up cost is 60 with monthly production limit of 300
Machine 2: per unit production cost 1.4 and fixed set up cost is 55 with monthly production limit of 250
Machine 3: per unit production cost 1.23 and fixed set up cost is 50 with monthly production limit of 270
Using INTERGER programming, determine how the 500 products can be produced at MINIMAL COST?
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