Question: A customer requires 5 0 , 6 5 , 1 0 0 , and 7 0 units of a commodily during the naxt 4 months,
A customer requires and units of a commodily during the naxt months, respectively, and no bacldogging is allowed; that is the customer's requirementen time the mel on time. Production costs $$$ and $ per unit during these months. The storage cost trom one month to the nath is $ par unit assassed on ending inventory It is estimated that each unit on hand at the end of month could be sold for $
A Determine how to minimire the net cost incurred in meeting the demands for the next four months.
B Starting with the optimal solution to A use Solver Table sadin to see whal hacgens to the foctelen varlables the total cost when the initial inventiory varies from the implied wabe in A to in units increments. How much lower would the fotal cost be if the compary starled with units in inventory, rather than noria? Would the same cost decrease ocour for every in increase in inflial hrepacy?
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