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Trejo Manufacturing makes a variety of household appliances at a single manufacturing facility. The expected demand for one of these appliances during the next 4
Trejo Manufacturing makes a variety of household appliances at a single manufacturing facility. The expected demand for one of these appliances during the next months is shown in the following table along with the expected production costs and the expected capacity for producing these items.
Month
Demand
Production Cost $ $ $ $
Production Capacity
Trejo estimates that it costs $ per month for each unit of this appliance carried in inventory at the end of each month. Currently, Trejo has units in inventory on hand for this product. To maintain a level workforce, the company wants to produce at least units per month. They also want to maintain a safety stock of at least units per month. Trejo wants to determine how many of each appliance to manufacture during each of the next months to meet the expected demand at the lowest possible total cost. Let Pi number of units to produce in month i and Ii inventory held at the end of month i
a
Draw a network flow model for this problem. Note: LB lower bound
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