Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Metal Fabricators, Inc., manufacturers gasgrill tanks, Model 1420, for four original equipment manufacturers (OEMs). Demand is forecast to be as follows: Quarter 1 2.500 tanks,

image text in transcribed
Metal Fabricators, Inc., manufacturers gasgrill tanks, Model 1420, for four original equipment manufacturers (OEMs). Demand is forecast to be as follows: Quarter 1 2.500 tanks, Quarter 2 - 3,100, Quarter 3 - 3,200, and Quarter 4 - 2,600. Due to a hedging program for sheet steel and increases in international tits, production cost per quarter vary as follows: Quarter 1 - $21.20 per tank, Quarter 2 - $25.20, Quarter 3 - $23.30, and Quarter 4 - $26.10. Due to production contracts with the OEMs, 10 shortages are allowed. Beginning inventory for Quarter ti 270 tanks. At the end of each quarter, inventory holding costs are $3.75 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 have any fields blank. If the constant is one or minus one, et "1" or "" correspondingly, Let - number of units produced in month i mnvertory at the end of months - 1. PE Minimal total cost P. Pa P3 The constraints are as follow Week 1 1: 12 set Select Select 15 Week 2: Week 3: Week 4 -Select- PE Pe It O fort - 1,2,3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting The Impact On Decision Makers An Alternative To Debits And Credits

Authors: Gary A. Porter, Curtis L. Norton

3rd Edition

0030335639, 978-0030335631

More Books

Students also viewed these Accounting questions

Question

=+a. Can the reader find the most important message?

Answered: 1 week ago