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Cynh972 Cynh972
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5 years ago
Describe how to incorporate fixed costs into a cost-minimizing linear program, where the fixed cost of using a machine is incurred if any products are produced on that machine.
 
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lightingmcqueenlightingmcqueen
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5 years ago
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Introduce a binary variable for each machine. In the objective function, for each machine, separately add the fixed cost of the machine times its respective binary variable. Then add a constraint for each machine that has the form: Xi  KiYi, where Xi is the number of units produced on machine i, Ki is the capacity of machine i, and Yi is the binary variable for machine i.
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Cynh972 Author
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5 years ago
Thanks for your help!
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