Question
firm need to produce the following number of units during the next three months; month 1, 200 units; month 2, 300 units; month 3, 300
firm need to produce the following number of units during the next three months; month 1, 200 units; month 2, 300 units; month 3, 300 units. For each unit produced during months 1 and 2, a $9 variable cost is incurred; for each unit produced during month 3, a $12 variable cost is incurred. The inventory cost is $2.50 for each unit in stock at the end of a month. The cost of setting up for production during a month is $250. Units made during a month may be used to meet demand for that month or next month only. Assume that production during each month must be a multiple of 100. Given that the initial inventory level is 0 units, use dynamic programming to determine an optimal production schedule
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