Question
omfort Plus Inc. (CPI) manufactures a standard dining chair used in restaurants. The demand forecasts for quarter 1 (JanuaryMarch) and quarter 2 (AprilJune) are 3,600
omfort Plus Inc. (CPI) manufactures a standard dining chair used in restaurants. The demand forecasts for quarter 1 (JanuaryMarch) and quarter 2 (AprilJune) are 3,600 chairs and 4,100 chairs, respectively. CPI has a policy of satisfying all demand in the quarter in which it occurs. The chair contains an upholstered seat that can be produced by CPI or purchased from DAP, a subcontractor. DAP currently charges $12.30 per seat but has announced a new price of $13.55, effective April 1. CPI can produce the seat at a cost of $10.05. CPI can produce up to 3,700 seats per quarter. Seats that are produced or purchased in quarter 1 and used to satisfy demand in quarter 2 cost CPI $1.30 each to hold in inventory, but maximum inventory cannot exceed 200 seats. Formulate a linear programming to minimize the total cost in dollars. ( X1 = number of seats produced by CPI in quarter 1, X2 = number of seats purchased from DAP in quarter 1, X3 = number of seats carried in inventory from quarters 1 to 2, X4 = number of seats produced by CPI in quarter 2, X5 = number of seats purchased from DAP in quarter 2.) Min $$10.05X1+10.05X4+12.30X2+12.30X5+1.30X3 Incorrect: Your answer is incorrect. s.t. quarter 1 demand $$X1+X2X3=3600 Incorrect: Your answer is incorrect. quarter 2 demand X4+X5+X3=4100 CPI's production capacity quarter 1 $$X13700 Correct: Your answer is correct. CPI's production capacity quarter 2 $$X23700 Incorrect: Your answer is incorrect. Inventory Capacity $$X3200 Correct: Your answer is correct. X1, X2, X3, X4, X5 0
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