# Models of inventory systems frequently consider the relationships among a beginning inventory, a production quantity, a demand or sales, and

## 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 =...

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Related Book For

ISBN: 978-0324651751

11th Edition

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

Question Details
Chapter # 1
Section: Problems
Problem: 17
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