A manufacturer provides specialized microchips. During the next 3 months its sales, costs, and available time are

There are no chips in stock at the beginning of the first month. It takes 1.5 hrs of production time to produce a chip and costs $5 to store a chip from one month to next. Determine a production schedule that meets the demand requirements, does not exceed the monthly production time limitations, and minimizes cost. Note that no chips should be in stock at the end of the 3months.

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Month 2 Month 3 Month 1 Chips required Cost regular time ($/chip) Cost overtime ($/chip) Regular operation time (hrs) 2200 120 130 2400 720 2500 1000 100 110 2400 720 100 120 2400 720 Overtime (hrs)