Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 38

In the example problem solution for this chapter on page 210, a textbook company was attempting to determine how many sales representatives to assign to each of two new regions. The company has now decided that if any sales representatives are assigned to region 1, a sales office must be established there, at an annual cost of $18,000. This altered problem is an example of a type of integer programming problem known as a "fixed charge" problem.
a. Reformulate the integer programming model to reflect this new condition.
b. Solve this new problem by using the computer.