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Alpha - Beta, Inc., needs to schedule the weekly production of widgets and gadgets for the next 4 weeks. The production of widgets and gadgets
AlphaBeta, Inc., needs to schedule the weekly production of widgets and gadgets for the next weeks. The production of widgets and gadgets requires machining a single raw material. Each widget requires pounds of raw material and minutes of machine time; each gadget requires pounds of raw material and minutes of machine time. Each pound of raw material currently costs $ but the price is expected to rise $ per pound each week. There is no storage area available for raw material and AlphaBeta must purchase the raw material used in a given week during that week. The total machine time available during each week is hours at a cost of $ per hour. In addition, hours of overtime are available each week at a cost of $ per hour. However, the cost of a machinehour is expected to rise during the last week. The projected weekly demands for widgets are units, and the weekly demands for Gadgets are units. A maximum of units of excess production can be stored from one week to the next at a cost of $ per unit. Assuming that beginning inventory levels are zero, develop a linear programming model to determine the optimal production and inventory schedules.
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