Eastinghouse sells air conditioners. The annual demand for air conditioners in each region of the country is as follows: East, 100,000; South, 150,000; Midwest, 110,000; West, 90,000. Eastinghouse is considering building the air conditioners in four different cities: New York, Atlanta, Chicago, and Los Angeles. The cost of producing an air conditioner in a city and shipping it to a region of the country is given in Table 18. Any factory can produce as many as 150,000 air conditioners per year. The annual fixed cost of operating a factory in each city is given in Table 19. At least 50,000 units of the Midwest demand for air conditioners must come from New York, or at least 50,000 units of the Midwest demand must come from Atlanta. Formulate an IP whose solution will tell Eastinghouse how to minimize the annual cost of meeting demand for air conditioners.

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Eastinghouse sells air conditioners. The annual demand
for air conditioners in each region of the country is as
follows: East, 100,000; South, 150,000; Midwest, 110,000;
West, 90,000. Eastinghouse is considering building the air
conditioners in four different cities: New York, Atlanta,
Chicago, and Los Angeles. The cost of producing an air
conditioner in a city and shipping it to a region of the
country is given in Table 18. Any factory can produce as
many as 150,000 air conditioners per year. The annual fixed
cost of operating a factory in each city is given in Table 19.
At least 50,000 units of the Midwest demand for air
conditioners must come from New York, or at least 50,000
units of the Midwest demand must come from Atlanta.
Formulate an IP whose solution will tell Eastinghouse how
to minimize the annual cost of meeting demand for air
conditioners.

TABLE 18
Price by Region ($)
City
East
South
Midwest
West
New York
206
225
230
290
Atlanta
225
206
221
270
Chicago
230
221
208
262
Los Angeles
290
270
262
215
Transcribed Image Text:TABLE 18 Price by Region ($) City East South Midwest West New York 206 225 230 290 Atlanta 225 206 221 270 Chicago 230 221 208 262 Los Angeles 290 270 262 215
TABLE 19
City
Annual Fixed Cost ($ Million)
New York
6.
Atlanta
5.5
Chicago
Los Angeles
5.8
6.2
Transcribed Image Text:TABLE 19 City Annual Fixed Cost ($ Million) New York 6. Atlanta 5.5 Chicago Los Angeles 5.8 6.2
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