Monthly costs of meeting its customer demands

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Reference no: EM131159197

Quinlan Electric ships 12,000 transformers per month to its customers. The transformers can be produced at 3 different plants. The capacity, fixed cost and variable costs are included in the data file below. If the plant is used at all, at least 3,000 transformers must be produced. If the plant is idle the fixed costs are 0. Determine how to minimize the company’s monthly costs of meeting its customer’s demands.

Transformer Data

Fixed Cost Plant 1-$80,000 Plant 2- $40,000 Plant 3- $30,000

Variable Cost Plant 1- $20 Plant 2- $25 Plant 3- $30

Production Capacity Plant 1- 6000 Plant 2- 7000 Plant 3- 6000

Reference no: EM131159197

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