The Okra Colada

An okra farm anticipates highly seasonal demand for their product, tender pods of okra that can be made into the new drink sensation, the okra colada. Their estimate of the demand profile appears below. This forecast is based on the demand profile of last year's drink, the tuna colada. Once everyone in the test market had actually sampled the drink, demand fell to zero.

MonthDemand ForecastJanuary1,200February2,400March3,600April4,800May2,200June200

The costs for the managerial levers appear in this table.

item/ cost Materials cost/unit$10Inventory holding cost/unit/month$2Marginal cost of stockout/unit/month$5Hiring and training cost/worker$300Layoff cost/worker$500Labor hours required/unit4Regular time cost/hour$4Over time cost/hour$6Beginning inventory equals1000Ending inventory greater than500Marginal subcontracting cost/unit$30

Use the Okra Colada scenario to answer this question. What constraints are associated with the level of inventory at the end of each period when using linear programming to solve this sales and operations planning problem?

Group of answer choices

Choose one:

EIJAN-MAY= 0

EIJUNE 500, EIJAN-MAY0

EIJAN-MAY 0

EIJUNE 500, EIJAN-MAY= 0