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The leading tire company in Indonesia has factories in Semarang and Purwokerto. The Semarang factory can make 600 Michelin and 100 Achilles tires per day. The Purwokerto factory can make 300 Michelin and 100 Achiles tires per day. It costs $20,000 per day to operate the Semarang plant and $15,000 per day to operate the Purwokerto plant. The company has a contract to manufacture at least 24,000 Michelin tires and 5,000 Achilles tires. How many days should each plant be scheduled to minimize operating costs? Formulate using the Big M Method

The leading tire company in Indonesia has factories in Semarang and Purwokerto. The Semarang factory can make 600 Michelin and 100 Achilles tires per day. The Purwokerto factory can make 300 Michelin and 100 Achiles tires per day. It costs $20,000 per day to operate the Semarang plant and $15,000 per day to operate the Purwokerto plant. The company has a contract to manufacture at least 24,000 Michelin tires and 5,000 Achilles tires. How many days should each plant be scheduled to minimize operating costs? Formulate using the Big M Method

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The leading tire company in Indonesia has factories in Semarang and Purwokerto. The Semarang factory can make 600 Michelin and 100 Achilles tires per day. The Purwokerto factory can make 300 Michelin and 100 Achiles tires per day. It costs $20,000 per day to operate the Semarang plant and $15,000 per day to operate the Purwokerto plant. The company has a contract to manufacture at least 24,000 Michelin tires and 5,000 Achilles tires.

How many days should each plant be scheduled to minimize operating costs?

Formulate using the Big M Method

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