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Meredith Ribbon Company produces paper and fabric decorative ribbon that it sells to paper products companies and craft stores. The demand for ribbon is seasonal.
Meredith Ribbon Company produces paper and fabric decorative ribbon that it sells to paper products companies and craft stores. The demand for ribbon is seasonal. Information about projected demand and production for a particular type of ribbon is given. An inventory holding cost of $0.006 is levied on every yard of ribbon carried over from one quarter to the next. (a) Define the decision variables needed to model this problem. Pi=profitperyardinquarteriSi=costperyardinquarterifori=1,2,3,4.Pi=productioninyardsinquarteriSi=endingsurplus(inventory)inquarterifori=1,2,3,4.Pi=profitperyardinquarteriSi=inventoryholdingcostperyardinquarterifori=1,2,3,4.Pi=inventoryholdingcostperyardinquarteriSi=profitperyardinquarterifori=1,2,3,4.Pi=costperyardinquarteriSi=profitperyardinquarterifori=1,2,3,4. (b) The objective is to minimize total cost (in dollars), the sum of production and inventory holding cost. Give the objective function. Min (c) Write the production capacity constraints. Quarter 1 Quarter 2 Quarter 3 Quarter 4 (d) Write the constraints that balance inventory, production, and demand for each quarter. Assume there is no beginning inventory in quarter 1. Quarter 1 Quarter 2 Quarter 3 Quarter 4 (e) To attempt to balance the production and avoid large changes in the workforce, production in quarter 1 must be within 6,000 yards of production in quarter 2. (Enter your answers as a comma-separated list of equations or inequalities.)
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