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; and West, 90,000. Eastinghouse is considering building its 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 the file P06_57.xlsx. Any factory can produce up to 150,000 air conditioners per year. The annual fixed cost of operating a factory in each city is given in the same file. At least 50,000 units of the Midwest demand for air conditioners must come from New York, and at least 50,000 units of the Midwest demand must come from Atlanta. Determine how Eastinghouse can minimize the annual cost of meeting demand for air conditioners.
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