Question: A local bakery plans to expand its bread making capacity over the next 5 months. Currently, it can produce 5000 loaves of bread per month,

A local bakery plans to expand its bread making capacity over the next 5 months. Currently,
it can produce 5000 loaves of bread per month, but estimates that its monthly demands will be as in the table.

1. is2. Oh3. Oh4. Oh5. Oh
Sue55006500800085009500

It can increase its current capacity by installing three different sized furnaces. one time each

purchase cost and monthly running cost are as follows and only one oven of each size is available.
An oven can be purchased any month, but when an oven is purchased
, the monthly usage cost is incurred regardless of the extent to which the oven is used.

OvenMonthly Capacitypurchase costMonthly Usage Cost
Small1000$ 30075 dollars
Medium2000$500 dollars100 dollars
Big3500$ 1,000125 dollars


If intent, formulate and resolve an IP that specifies when (and which) a furnace should be purchased.
is to minimize the cost

Step by Step Solution

3.38 Rating (148 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Objective Function Minimize Z 3000x1 5000x2 10000x3 75y1 100y2 125y3 Su... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!