During the next four months, a customer requires, respectively, 500, 650, 1000,
ID: 3210024 • Letter: D
Question
During the next four months, a customer requires, respectively, 500, 650, 1000, and 700 units of a commodity, and no backlogging is allowed (that is, the customer’s requirements must be met on time). Production costs are $150, $180, $140, and $170 per unit during these months. The storage cost from one month to the next is $20 per unit (assessed on ending inventory). It is estimated that each unit on hand at the end of month 4 can be sold for $600. Assume there are 10 units of beginning inventory.
Determine how to minimize the net cost incurred in meeting the demands for the next four months. (Write your notation, LP formulation explicitly, submit your managerial reports with computer models, solutions, answer and sensitivity reports attached.)
See Attached Excel Sheet. The best way to minimize cost is through product. A client request a certain number of products and depending on the month production cost changes. If the company had a set production cost for each product each month then the company can minimize the cost.
If the production costs are all set to $150, would your solution change?
Explanation / Answer
"See Attached Excel Sheet. The best way to minimize cost is through product. A client request a certain number of products and depending on the month production cost changes. If the company had a set production cost for each product each month then the company can minimize the cost."
can you please update question with Excel sheet
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