Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company wishes to plan its production of two items with seasonal demands over a 1 2 - month period. The monthly demand of item

image text in transcribed
A company wishes to plan its production of two items with seasonal demands over a 12-month period. The monthly demand of item1 is 100 units during the months of October, November and December; 10 units during the months of January, February, March and April; and 30 units during the remaining months. The demand of item2 is 50 units during the months of September, October, November and December and 15 units during the remaining months. Suppose that the unit product cost of item 1 and item 2 is 5000TL and 8000TL, respectively, if they are manufactured before June. After June, the unit costs are reduced to 4500 TL and 7000 TL because of the installation of an improved manufacturing system. Item1 requires 1 unit of a key component and item2 requires 2 units. The availability of this key component is 120 units per month during January-September and 150 units per month during October-December. Furthermore, each unit of item1 occupies 2m3 and each item 2 occupies 4m3 of inventory. Suppose that the maximum inventory space allocated to these items is 200m3 and that the holding cost during any month is 100TLm3.
Formulate a linear programming model which will represent this system. Define the decision variables, state the objective function, and specify all the constraints.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Theodore E. Christensen, David M. Cottrell, Cassy JH Budd

11th edition

78025877, 978-0078025877

More Books

Students also viewed these Accounting questions

Question

acknowledge the potential downsides of technology

Answered: 1 week ago