Question: Big Electronics manufactures two LED television monitors, identified as Model A and Model B. Big Electronics possesses three manufacturing plants. Each model has its lowest

Big Electronics manufactures two LED television monitors, identified as Model A and Model B. Big Electronics possesses three manufacturing plants. Each model has its lowest possible production cost when produced at Plant 1. However, Plant 1 does not have the capacity to handle the total production of both models. As a result, at least some of the production must be routed to the other two manufacturing plants. The following table shows the minimum production requirements for next month, the plant capacities in units per month, and the production cost per unit at each plant:

Model

Production Cost per Unit

Minimum Production Requirements

Plant 1

Plant 2

Plant 3

A

$30

$55

$40

70,000

B

$25

$45

$65

60,000

Production Capacity

80,000

50,000

40,000

Big's objective is to determine the minimum cost production plan.

1. Develop the generic model.

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