Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Apple Inc., must determine how many new Apple Watch to produce each of the next four quarters of 2 0 2 3 . The demand

Apple Inc., must determine how many new Apple Watch to produce each of the next four quarters of 2023. The demand for each of the next four quarters is as follows: first quarter, 6000 Watches; second quarter, 5500 Watches; third quarter, 7500 Watches, fourth quarter, 6500 Watches. Apple must meet demand on time. At the beginning of the first quarter, Apple Inc., has an inventory of 450 Watches. At the beginning of each quarter, Apple Inc., must decide how many Watches should be produced during that quarter. For simplicity, we assume that Watches manufactured during a quarter can be used to meet demand for that quarter.
During each quarter, Apple Inc., produces up to 3500 Watches with regular-time labor at a total cost of $200 per Watch. By having employees work overtime during a quarter, Apple Inc., can produce additional Watch with overtime labor at a cost of $300 per Watch. At the end of each quarter (after production has occurred and the current quarters demand has been satisfied), a carrying or holding cost of $10 per Watch is incurred.
Formulate the linear programming to determine a production schedule to minimize the sum of production and inventory costs during the next four quarters.
(Attach Excel Solution showing model display and screen shot of solver)
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

Bears Of The World Ecology Conservation And Management

Authors: Vincenzo Penteriani, Mario Melletti

1st Edition

1108483526, 978-1108483520

More Books

Students also viewed these General Management questions