Models of inventory systems frequently consider the relationships among a beginning inventory, a production quantity, a demand

Question:

Models of inventory systems frequently consider the relationships among a beginning inventory, a production quantity, a demand or sales, and an ending inventory. For a given production period j, let

sj-1 = ending inventory from the previous period (beginning inventory for period j)

xj = production quantity in period j

dj = demand in period j

sj = ending inventory for period j

a. Write the mathematical relationship or model that shows ending inventory as a function of beginning inventory, production, and demand.

b. What constraint should be added if production capacity for period j is given by Cj?

c. What constraint should be added if inventory requirements for period j mandate an ending inventory of at least Ij?


Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Quantitative Methods for Business

ISBN: 978-0324651751

11th Edition

Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam

Question Posted: