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EZ-Windows, Inc. manufacturers replacement windows for the home remodelingbusiness. In January, the company produces 15,000 windows and ended the monthwith9,000windowsininventory.EZ-Windows'managementteamwouldliketode-velop a production schedule for the

  1. EZ-Windows, Inc. manufacturers replacement windows for the home remodelingbusiness. In January, the company produces 15,000 windows and ended the monthwith9,000windowsininventory.EZ-Windows'managementteamwouldliketode-velop a production schedule for the next three moths.A smooth production scheduleis obviously desirable because it maintains the current workforce and provides a sim-ilar month-to-month operation. However, given the sales forecasts, the productioncapacities, and the storage capabilities as shown in Table 2, the management teamdoes not think a smooth production schedule with the same production quantity eachmonthpossible.

The company's cost accounting department estimates that increasing productionbyonewindowfromonemonthtothenextwillincreasetotalcostsby$1.00foreach

Table2:Problem1.8

February

March

April

Salesforecast

15,000

16,500

20,000

Productioncapacity

14,000

14,000

18,000

Storagecapacity

6,000

6,000

6,000

unit increase in the production level. In addition, decreasing production by one unitfrom one month to the next will increase total costs by $0.65 for each unit decrease inthe production level.Ignoring production and inventory carrying costs, formulate alinear programming model that will minimize the cost of changing production levelswhilestillsatisfyingthemonthlysalesforecasts.

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