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A company faces the following demands during the next 3 weeks: week 1 , 2 0 units; week 2 , 1 0 units; week 3
A company faces the following demands during the next weeks: week units;
week units; week units. The unit production costs during each week are as
follows: week $; week $; week $ A holding cost of $ per unit is assessed
against each week's ending inventory. At the beginning of week the company has units
on hand. In reality, not all goods produced during a month can be used to meet the current
month's demand. To model this fact, we assume that only half of the goods produced during
a week can be used to meet the current week's demands. Determine how to minimize the
cost of meeting the demand for the next weeks using Excel's Solver. Specifically state
how much of the commodity to produce each month and identify the optimal total net cost
under this scenario.
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