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A company wishes to plan its production of two items with seasonal demands over a 1 2 - month period. The monthly demand of item
A company wishes to plan its production of two items with seasonal demands over a month period. The monthly demand of item is units during the months of October, November and December; units during the months of January, February, March and April; and units during the remaining months. The demand of item is units during the months of September, October, November and December and units during the remaining months. Suppose that the unit product cost of item and item is and respectively, if they are manufactured before June. After June, the unit costs are reduced to TL and TL because of the installation of an improved manufacturing system. Item requires unit of a key component and item requires units. The availability of this key component is units per month during JanuarySeptember and units per month during OctoberDecember. Furthermore, each unit of item occupies and each item occupies of inventory. Suppose that the maximum inventory space allocated to these items is and that the holding cost during any month is
Formulate a linear programming model which will represent this system. Define the decision variables, state the objective function, and specify all the constraints.
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