Topic: Economic Order Quantity

Determine the Economic Order Quantity in Excel for: Price of Product: $150 Savings Rate: 12% Annual Usage: 16240 Cost of transportation: $200/order Cost of PO preparation: $60/order Warehouse Rental: $8/piece Topic: Linear Programming

Develop problem 1 of chapter 8 using excel or by hand. You need to present the objective and constraints equations. No need to solve it.

The Waikiki Enterprise Corporation produces two types of computers at its manufacturing plant in Torrance, California. Profit on computers A is $900 per unit and for computer B it is $600. The manufacturing plant can produce not more than 50 of computer A and 100 of computer B a day. The following table displays the capacity for the manufacturing plant.

a) What are the decision variable?

b) What is the objective function?

c)What are the constraints?

d)What are the non-negativity assumptions?