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Regular Prod. Capacity = 4000 units/qtr Overtime Prod. Capacity = 1200 units/qtr Subcont Prod. Capacity 3000 units/qtr = 8000 units/qtr Quarter Demand 1 4100

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Regular Prod. Capacity = 4000 units/qtr Overtime Prod. Capacity = 1200 units/qtr Subcont Prod. Capacity 3000 units/qtr = 8000 units/qtr Quarter Demand 1 4100 2 8900 Inventory Capacity 3 5300 Beginning Inventory = 900 units Regular Prod. Cost = $10/unit Overtime Prod. Cost = $14/unit Subcont Prod. Cost = $18/unit Inventory Cost = $5/unit/qtr Backordering Cost = $16/unit/qtr Linear programming is to be used to determine a production plan strategy of Level Production, Overtime, and Subcontracting. 1. Formulate the Objective Function (note that there are 3 quarters) a. 10R1 b. 513 c. B d. 3000S1 2. Formulate all Constraints (standardized) a. R - 4000 = 0 b. R + 01+ S + = 4100 c. R+ O2 + S2 + 11-12 = 8900 d. 03 1200 e. 10R2 + 1402 + 18S2 + 512= 8900 f. W- W + H2 - F = 0 3. How many decision variables are in the model? 4. How many constraints are in the model?

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