Question
Metal Fabricators, Inc. manufacturers gas grill tanks, Model # 1420, for four original equipment manufacturers (OEMs). Demand is forecast to be as follows: Quarter 1
Metal Fabricators, Inc. manufacturers gas grill tanks, Model # 1420, for four original equipment manufacturers (OEMs). Demand is forecast to be as follows: Quarter 1 2,900 tanks, Quarter 2 3,600, Quarter 3 3,800, and Quarter 4 3,000. Due to a hedging program for sheet steel and increases in international tariffs, production cost per quarter vary as follows: Quarter 1 $24.70 per tank, Quarter 2 $29.40, Quarter 3 $27.20, and Quarter 4 $30.50. Due to production contracts with the OEMs, no shortages are allowed. Beginning inventory for Quarter 1 is 320 tanks. At the end of each quarter, inventory holding costs are $4.50 per tank. Formulate this as a linear optimization model but do not solve. Round your answers for the coefficients for objective function to two decimal places and round other answers to the nearest whole number. Use a minus sign where appropriate and do not leave any fields blank. If the constant is one or minus one, enter "1" or "-1" correspondingly.
Let: | |
Pi = number of units produced in month i, | |
Ii = inventory at the end of month i |
Minimal total cost | = | P1 | + | P2 | + | P3 | + | P4 | + | I1 | + | I2 | + | I3 |
The constraints are as follows:
Week 1: P1 | + | + | I1 | -Select-=Item 11 | ||
Week 2: I1 | + | P2 | + | I2 | -Select-=Item 16 | |
Week 3: I2 | + | P3 | + | I3 | -Select-=Item 21 | |
Week 4: I3 | + | P4 | + | I4 | -Select-=Item 26 | |
Pt, It 0 for t = 1, 2, 3 |
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