Question: PM Computer Services produces personal computers from component parts it buys on the open market. The company can produce a maximum of 300 personal computers

PM Computer Services produces personal computers from component parts it buys on the open market. The company can produce a maximum of 300 personal computers per month. PM wants to determine its production schedule for the first 6 months of the new year. The cost to produce a personal computer in January will be $1,200. However, PM knows the cost of component parts will decline each month so that the overall cost to produce a PC will be 5% less each month. The cost of holding a computer in inventory is $15 per unit per month. Following is the demand for the company€™s computers each month:

Determine a production schedule for PM that will minimize totalcost.

Month Demand Month Demand 210 400 320 January 180 February March 260 340 April May une

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