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 - 3,100 tanks, Quarter 2 - 3,700, Quarter 3 - 4,000, and Quarter 4 - 3,200. Due to a hedging program for sheet steel and increases in international tariffs, production cost per quarter vary as follows: Quarter 1 - $25.90 per tank, Quarter 2 - $30.80, Quarter 3 - $28.50, and Quarter 4 - $31.90. Due to production contracts with the OEMs, no shortages are allowed. Beginning inventory for Quarter 1 is 330 tanks. At the end of each quarter, inventory holding costs are $4.70 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.
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