During the next three months, a heating and cooling company must meet (on time) the following demands for air conditioners: month 1, 600; month 2, 400; and month 3, 300. Air conditioners can be produced in either New York or Los Angeles. It takes 1.5 hours of skilled labor to produce an air conditioner in Los Angeles, and it takes 2 hours in New York. It costs $400 to produce an air conditioner in Los Angeles, and it costs $350 in New York. During each month, each city has 520 hours of skilled labor available. It costs $25 to hold an air conditioner in inventory for a month. At the beginning of month 1, the company has 100 air conditioners in stock. Determine how the company can minimize the cost of meeting air conditioner demands for the next three months.
