A company manufactures three products: A, B, and C. The company currently has an order of 3 units of A, 7 units of B, and 4 units of C. There is no inventory for any of these products. All three products require special processing that can be done on one of two machines. The cost of producing each product on each machine is summarized in the following table:
Machine A B C
1 $13 $9 $10
2 $11 $12 $8
The time required to produce each product on each machine is summarized in the following table:
Machine A B C
1 0.4 1.1 0.9
2 0.5 1.2 1.3
Assume machine 1 can be used for eight hours and machine 2 can be used for six hours. Each machine must undergo a special setup operation to prepare it to produce each product. After completing this setup for a product, any number of that product type can be produced. The setup costs for producing each product on each machine are summarized in the following table:
Machine A B C
1 $55 $93 $60
2 $65 $58 $75
a. Formulate an ILP model for this problem.
b. Implement your model in Excel and solve it.
c. What is the optimal solution?