A company has contracted to produce two products, A and B, over the months of June, July, and August. The total production capacity (expressed in hours) varies monthly. The following table provides the basic data of the situation:

The production rates in units per hour are .75 and 1 for products A and B, respectively. All demand must be met. However, demand for a later month may be filled from the production in an earlier one. For any carryover from one month to the next, holding costs of $.90 and $.75 per unit per month are charged for products A and B, respectively. The unit production costs for the two products are $30 and $28 for A and B, respectively. Develop an LP model to determine the optimum production schedule for the two products and find the optimum solution using AMPL, Solver, or TORA.

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Demand for A (units) Demand for B (units) Capacity (hours) June 500 1000 3000 July 5000 1200 3500 August 750 1200 3000