6 Consider Problem 5 with the following modification: Each month Toyco can delay payments on some or
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6 Consider Problem 5 with the following modification:
Each month Toyco can delay payments on some or all of the cash owed for the current month. This is called “stretching payments.” Payments may be stretched for only one month, and a 1% penalty is charged on the amount stretched. Thus, if it stretches payments on $10,000 cash owed in January, then it must pay 10,000(1.01) $10,100 in February. With this modification, formulate an LP that would help Toyco maximize its cash on hand at the beginning of January 1, 2004.
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Related Book For
Operations Research Applications And Algorithms
ISBN: 9780534380588
4th Edition
Authors: Wayne L. Winston
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