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7. Pens Galore has planned their production for Product A and Product B for the next 4 months. They expected demand for the products is
7. Pens Galore has planned their production for Product A and Product B for the next 4 months. They expected demand for the products is shown in the following table, along with the expected production costs and expected capacity for production. 1 anuary 430 February 440 March 510 April 520 | 200 300 400 500 25 18 22 41 Product A Demand (units) Product B Demand (units) Product A Production cost per unit ($) Product B Production cost per unit ($) Production capacity (units) 25 18 22 41 L 350 400 250 300 It will cost Pens Galore $1.50 per month for each item carried in inventory. They currently have 125 units of Product A and 200 units of Product B in inventory. They would like to have 220 of Product A and 150 of Product B in inventory at the end of April. The maximum inventory that they can store per month is 440 units. Formulate the LP model for Pens Galore to determine how much of Product A and Product B to make during each of the next 4 months to meet the expected demand at the lowest possible production and inventory costs. 22 points 7. Pens Galore has planned their production for Product A and Product B for the next 4 months. They expected demand for the products is shown in the following table, along with the expected production costs and expected capacity for production. 1 anuary 430 February 440 March 510 April 520 | 200 300 400 500 25 18 22 41 Product A Demand (units) Product B Demand (units) Product A Production cost per unit ($) Product B Production cost per unit ($) Production capacity (units) 25 18 22 41 L 350 400 250 300 It will cost Pens Galore $1.50 per month for each item carried in inventory. They currently have 125 units of Product A and 200 units of Product B in inventory. They would like to have 220 of Product A and 150 of Product B in inventory at the end of April. The maximum inventory that they can store per month is 440 units. Formulate the LP model for Pens Galore to determine how much of Product A and Product B to make during each of the next 4 months to meet the expected demand at the lowest possible production and inventory costs. 22 points
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