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What is optimal solution

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Aire-Co produces home dehumidifiers at two different plants in Atlanta and Phoenix. The per unit cost of production in Atlanta and Phoenix is $400 and $360, respectively. Each plant can produce a maximum of 300 units per month. Inventory holding costs are assessed at $30 per unit in beginning inventory each month. Aire-Co estimates the demand for its product to be 300, 400, and 500 units, respectively, over the next three months. Aire-Co wants to be able to meet this demand at minimum cost.

a. Implement your model in a spreadsheet and solve it, and what is optimal solution?

Reference no: EM132946749

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