Multi$-$period Planning Problem

The Silver Star Bicycle Company will be

manufacturing men's and women's models for its $10$

speed bicycles during the next $2$ months.

Management wants to develop a production schedule

indicating how many bicycles of each model should

be produced in each month.

Demand forecasts call for $150$ men's and $125$

women's models to be shipped during the first month

and $200$ men's and $150$ women's during the second

month.

Last month the company used a total of $1000$ hours of

labor. Company's policy will not allow the total hours

of labor to increase or decrease by more than $100$

hours from month to month.

The company charges inventory $2\%$ of the production

cost$.$ The company would like to have at least $25$

units of each model at the end of the $2$ months.

What is the minimum cost production schedule?