3. A new startup wants to test drive their amazing new product (edible laundry pods!) next...

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3. A new startup wants to test drive their amazing new product (edible laundry pods!) next summer. The have a forecast for the demand (d1, d2, d3) and the production costs (c1, c2, c3) for each of the three months in the summer. They have a limited production capacity of K units per month but they can also outsource up to M units of additional production each month at a cost of p dollars. Initial inventory is 0 and final inventory must be 0 at the end of the summer. They have virtually unlimited capacity to store units in inventory at a cost of h dollars per unit stored per month. The goal of the company is to create a production, outsourcing, and inventory plan to satisfy the demand at minimal cost. Formulate as a mathematical program, clearly state your variables, objective function, and constraints. 3. A new startup wants to test drive their amazing new product (edible laundry pods!) next summer. The have a forecast for the demand (d1, d2, d3) and the production costs (c1, c2, c3) for each of the three months in the summer. They have a limited production capacity of K units per month but they can also outsource up to M units of additional production each month at a cost of p dollars. Initial inventory is 0 and final inventory must be 0 at the end of the summer. They have virtually unlimited capacity to store units in inventory at a cost of h dollars per unit stored per month. The goal of the company is to create a production, outsourcing, and inventory plan to satisfy the demand at minimal cost. Formulate as a mathematical program, clearly state your variables, objective function, and constraints.

Answer rating: 100% (QA)

Variables Let x1 x2 and x3 be the production quantities for months 1 2 and 3 r... View the full answer