Question
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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