# computing spreadsheet help

**Question description**

1. State University must purchase 1700 computers from three vendors.

Vendor 1 charges $500 per computer plus a total delivery charge of $5,000.

Vendor 2 charges $350 per computer plus a total delivery charge of $4,000.

Vendor 3 charges $250 per computer plus a total delivery charge of $6,000.

Vendor 1 will sell the university at most +600 computers, vendor 2, at most

1100, and vendor 3, at most 700. The minimum order from a vendor is

200 computers. Determine how to minimize the cost of purchasing the

needed computers.

a. Interpretation “a” - Each vendor must supply at least the

minimum. Hence all vendors are used and all delivery charges are

incurred.

b. Interpretation “b” - Each vendor must supply at least the

minimum only if that vendor is used. Hence delivery charges are

incurred only for those vendors used. Hint - A fixed cost can be

modeled by using a binary integer variable.

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