The manufacturer of a drilling machine wants to produce at least 2000 units of the drilling machine
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Question:
The manufacturer of a drilling machine wants to produce at least 2000 units of the drilling machine from three machines as stated in the table above. The minimum lot size for each of the three machines is 500 units. A complete unit of the drilling machine is only considered as a valid finished good. The production per unit cost, setup cost and the maximum capacity have been provided in the table too. Design an OR model to minimize the total production cost.
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