Question: Hart Manufacturing After evaluating the solution obtained in part ( b ) , one of the production supervisors noted that production setup costs had not
Hart Manufacturing
After evaluating the solution obtained in part b one of the production supervisors noted that production setup costs had not been taken into account. She noted that setup costs are $ for product $ for product and $ for product If the solution developed in part b is to be used, what is the total profit contribution in dollars after taking into account the setup costs?
Management realized that the optimal product mix, taking setup costs into account, might be different from the one recommended in part b Formulate a mixedinteger linear program that takes setup costs into account. Management also stated that we should not consider making more than units of product units of product or units of product Let
Pi units of product i produced and yi
be the variable that is one if any quantity of product i is produced and zero otherwise, for
i
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