Question
The demand for an item over the next four quarters is 300,400, 450, and 250 units, respectively. The price per unit starts at Rs. 20
The demand for an item over the next four quarters is 300,400, 450, and 250 units, respectively. The price per unit starts at Rs. 20 in the first quarter and increased by Rs. 3 each quarter thereafter. Although we can take advantage of lower prices in early quarters, a storage cost of Rs. 3.80 is incurred per unit per quarter. In addition, the number of units that can be held over from one quarter to the next cannot exceed 100. List all the decision variables to develop a linear program formulation and hence write down the formulation to determine the optimum schedule for purchasing the item to meet the demand. Label each constraint appropriately. (Do not solve!).
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