Question: Outdoors Inn (see Problem 7-41) expanded its tent-making operations later in the year. While still making the Double Inn tent, it is also making a
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In Problem 7-41, Outdoor Inn, a camping equipment manufacturer in southern Utah, is developing a production schedule for a popular type of tent, the Double Inn. Orders have been received for 180 of these to be delivered at the end of this month, 220 to be delivered at the end of next month, and 240 to be delivered at the end of the month after that. This tent may be produced at a cost of $ 120, and the maximum number of tents that can be produced in a month is 230. The company may produce some extra tents in one month and keep them in storage until the next month. The cost for keeping these in inventory for 1 month is estimated to be $ 6 per tent for each tent left at the end of themonth.
DEMAND COST TO DEMAND COSTTO FOR PRODUCE FOR PRODUCEE DOUBLE DOUBLE FAMILY FAMILY INN $120 S130 $130 MONTH INN 185 205 225 ROLLS 60 70 65 ROLLS S150 $160 $160 2
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