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1 . Metal Fabricators, Inc. manufactures gas grill tanks, Model # 1 4 2 0 , for four original equipment manufacturers ( OEMs ) .

1. Metal Fabricators, Inc. manufactures gas grill tanks, Model # 1420, for four original equipment manufacturers (OEMs). Demand is forecast to be as follows: Quarter 1=2,700 tanks, Quarter 2=3,400, Quarter 3=3,700, and Quarter 4=2,900. Due to a hedging program for sheet steel and increases in international tariffs, production cost per quarter vary as follows: Quarter 1= $23.50 per tank, Quarter 2= $28.00, Quarter 3= $25.90, and Quarter 4= $29.00. Due to production contracts with the OEMs, no shortages are allowed. Beginning inventory for Quarter 1 is 300 tanks. At the end of each quarter, inventory holding costs are $4.25 per tank.
a. Formulate the problem as a linear programming model (see Supplement D).
b. Solve the model in (a) using Excel Solver.

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