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Acme Manufacturing Inc. makes a variety of household appliances at a single manufacturing facility. The expected demand for one of these appliances during the next
Acme Manufacturing Inc. makes a variety of household appliances at a single manufacturing
facility. The expected demand for one of these appliances during the next four months is shown
in the following table along with expected production cost and the expected capacity for
producing these items.
Month
Demand units
Production cost per unit $
Production Capacity units
Acme estimates it costs $ per month for each unit of this appliance carried in inventory
estimated by averaging the beginning and ending inventory levels each month Currently,
Acme has units in inventory on hand for this product. To maintain a level workforce, the
company wants to produce at least units per month. It also wants to maintain a safety stock
of at least units per month. Acme wants to determine how many of each appliance to
manufacture during each of the next four months to meet the expected demand at the lowest
possible total cost. Formulate the problem as an LP model. Do not solve it using excel solver
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