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A company has contracted to produce two products, A and B , over the months of June, July, and August. The total production capacity (
A company has contracted to produce two products, A and B over the months of June, July, and August. The total production capacity expressed in hours varies monthly. The following table provides the basic data of the situation: June July August Demand for A units Demand for B units Capacity hours The production rates in units per hour are and for products A and B respectively. All demand must be met. However, demand for a later month may be filled from the production in an earlier one. For any carryover from one month to the next, holding costs of $ and $ per unit
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