Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

12. A company wants to plan production and inventory levels for its new product for the next 4 months so as to minimize the inventory

image text in transcribed
12. A company wants to plan production and inventory levels for its new product for the next 4 months so as to minimize the inventory holding and production costs. Demand is anticipated to be 130, 160, 270, and 150, respectively. The product is manufactured at the cost of $32 per unit. The cost of carrying one unit of inven- tory at the end of the month is $4. The inventory level at the beginning of the first month is 10 units and inventory required at the end is at least 20 units. Other information is given below: MONTH PRODUCTION CAPACITY 160 200 AWNI 210 160 a. Formulate a linear program, clearly defining all variables used, to determine the production and inventory in each period that minimizes the total cost. b. Use Solver to find the optimal solution to the linear program from part a

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information For Business Decisions

Authors: Billie Cunningham, Loren A. Nikolai, John Bazley

1st Edition

0030224292, 978-0030224294

Students also viewed these Mathematics questions