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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
1234
Demand (units)420580310540
Production cost per unit ($)49454647
Production Capacity (units)500520450550
Acme estimates it costs $1.50 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 120 units in inventory on hand for this product. To maintain a level workforce, the
company wants to produce at least 400 units per month. It also wants to maintain a safety stock
of at least 50 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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