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EZ-Windows, Inc., manufactures replacement windows for the home remodeling business. In January, the company produced 15,000 windows and ended the month with 9000 windows in

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EZ-Windows, Inc., manufactures replacement windows for the home remodeling business. In January, the company produced 15,000 windows and ended the month with 9000 windows in inventory. EZ-Windows' management team would like to develop a production schedule for the next three months. A smooth production schedule is obviously desirable because it maintains the current workforce and provides a similar month-to-month operation. However, given the sales forecasts, the production capacities, and the storage capabilities as shown, the management team does not think a smooth production schedule with the same production quantity each month is possible. February March April 15,000 14,000 6,000 16,500 14,000 6,000 Sales forecast 20,000 18,000 6,000 Production capacity Storage capacity The company's cost accounting department estimates that increasing production by one window from one month to the next will increase total costs by $1.00 for each unit increase in the production level. In addition, decreasing production by one unit from one month to the next will increase total costs by $0.65 for each unit decrease in the production level. Ignoring production and inventory carrying costs, formulate and solve a linear programming model that will minimize the cost of changing production levels while still satisfying the monthly sales forecasts. If required, round your answers to two decimal places. I1 Min I2 I3 Di D2 D3 s.t February Demand (1) F1 S1 (2) March Demand - S1 S2 April Demand (3) - S2 + S3 (4) Change in February Production F - I1 Di (5) Change in March Production - F I2 D2 = - (6) D3 = Change in April Production - I3 (7) February Production Capacity F S March Production Capacity (8) M S (9) April Production Capacity A S (10) February Storage Capacity March Storage Capacity (11) S2 S (12) April Storage Capacity S3 S Cost: $ February March April Production Level Increase in Production Decrease in Production Ending Inventory EZ-Windows, Inc., manufactures replacement windows for the home remodeling business. In January, the company produced 15,000 windows and ended the month with 9000 windows in inventory. EZ-Windows' management team would like to develop a production schedule for the next three months. A smooth production schedule is obviously desirable because it maintains the current workforce and provides a similar month-to-month operation. However, given the sales forecasts, the production capacities, and the storage capabilities as shown, the management team does not think a smooth production schedule with the same production quantity each month is possible. February March April 15,000 14,000 6,000 16,500 14,000 6,000 Sales forecast 20,000 18,000 6,000 Production capacity Storage capacity The company's cost accounting department estimates that increasing production by one window from one month to the next will increase total costs by $1.00 for each unit increase in the production level. In addition, decreasing production by one unit from one month to the next will increase total costs by $0.65 for each unit decrease in the production level. Ignoring production and inventory carrying costs, formulate and solve a linear programming model that will minimize the cost of changing production levels while still satisfying the monthly sales forecasts. If required, round your answers to two decimal places. I1 Min I2 I3 Di D2 D3 s.t February Demand (1) F1 S1 (2) March Demand - S1 S2 April Demand (3) - S2 + S3 (4) Change in February Production F - I1 Di (5) Change in March Production - F I2 D2 = - (6) D3 = Change in April Production - I3 (7) February Production Capacity F S March Production Capacity (8) M S (9) April Production Capacity A S (10) February Storage Capacity March Storage Capacity (11) S2 S (12) April Storage Capacity S3 S Cost: $ February March April Production Level Increase in Production Decrease in Production Ending Inventory

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