Consider a situation where a particular product is produced and placed in in-process inventory until it is
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There currently is 1 unit in inventory, and we want to have 2 units in inventory at the end of 3 months. A maximum of 3 units can be produced on regular-time production in each month, although 1 additional unit can be produced on overtime at a cost that is 2 larger than the regular-time unit production cost. The holding cost is 2 per unit for each extra month that it is stored.
Use dynamic programming to determine how many units should be produced in each month to minimize the total cost.
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Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
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