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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 The demand for each of the next four quarters is as follows: first quarter, Watches; second quarter, Watches; third quarter, Watches, fourth quarter, Watches. Apple must meet demand on time. At the beginning of the first quarter, Apple Inc., has an inventory of 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 Watches with regulartime labor at a total cost of $ per Watch. By having employees work overtime during a quarter, Apple Inc., can produce additional Watch with overtime labor at a cost of $ 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 $ 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.
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