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Problem 2. (10 pts) A manufacturing rm needs to schedule the monthly production of two seasonal items for the next 6 months. The unit production
Problem 2. (10 pts) A manufacturing rm needs to schedule the monthly production of two seasonal items for the next 6 months. The unit production cost of item A is estimated to be $15 for the rst 2 months, $16 for the third and fourth months, and $18 for the last two months. The unit production cost for item B is estimated to be $8 for the rst three months and $10 for the last three months. The monthly demands for item A are 200, 250, 400, 650, 700, 450 units, and the monthly demands for item B are 160, 180, 370. 500, 420, 350 units. The rm can produce a maximum of 800 units per month. Excess production can be stored from one month to the next at a. cost of $2 per unit, but a. maximum of 200 total units can be stored in any given month. Assuming that beginning inventory levels are zero1 how should the production be scheduled so as to minimize the total costs
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