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A company faces the following demands during the next three weeks: Week 1, 20 units Week 2: 10 units Week 3, 15 units The unit

A company faces the following demands during the next three weeks:

  • Week 1, 20 units
  • Week 2: 10 units
  • Week 3, 15 units

The unit production costs during each week are as follows: week 1, $10; week 2, $11; week 3, $15. A holding cost of $2 per unit is assessed against each week's ending inventory. At the beginning of week 1, the company has five units on hand. No backlog is allowed in any week. Determine how to minimize the cost of meeting the demand for the next three weeks.

Inputs
Week 1 2 3
Demand 20 10 15
Unit production cost $ 10 $ 11 $ 15
Unit holding cost
Initial inventory
Production schedule by week 1 2 3
Decision Var: # to be Produced
Available to meet demand
>= >= >=
Demand 20 10 15
Ending inventory
Production cost
Holding cost
Objective Function
Total Costs

2.Imagine that you have $1,000 to invest in stocks and loans. Each dollar invested in stocks yields $0.1 profit, and each dollar invested in a loan yields $0.15 profit. At least 30% of all money invested must be in stocks, and at least $400 must be in loans. Determine how you can maximize the profit earned on your investments.

Inputs
Profits per dollar invested
Stocks
Loans
Min percentage in stocks
Min dollar amount in loans
Total $ amount available
Decision Variables
Amount in Stock
Amount in Loans
Objective Function
Total returns
Constraints

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