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A company faces the following demands during the next three periods: period 1 , 2 0 units; period 2 , 1 0 units; period 3
A company faces the following demands during the next three periods: period units; period units; period units. The unit production cost during each period isas follows: period $; period $; period $ A holding cost of $ per unit is assessed against each period's ending inventory. At the beginning of period the companyhas 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 one half of the goods produced during a period can be used to meet the current period's de mands. Formulate an LP to minimize the cost of meetingthe demand for the next three periods. Hint: Constraintssuch as i x are certainly needed. Unlike ourexample, however, the constraint i will not ensure
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