Question
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
- 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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