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A small computer manufacturing company forecasts the demand over the next n months to be di, i = 1, 2, . . . , n.

A small computer manufacturing company forecasts the demand over the next

n months to be di, i = 1, 2, . . . , n. In any month it can produce r units, using

regular production, at a cost of b dollars per unit. By using overtime, it can

produce additional units at c dollars per unit, where c > b. The firm can store

units from month to month at a cost of s dollars per unit per month. Formulate

the problem of determining the production schedule that minimizes cost. (Hint:

See Exercise 9.)

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