(a) Formulate an algebraic model for the problem. Submit this in Word or pdf.

(b) Use either the Excel Solver or LINGO to solve the model. Submit the computer file. If you use Excel Solver, you will have to write the model in standard form, i.e. all variables on the left-hand side, and a number of the right-hand side. If you use LINGO, you are not bound by this restriction.

(c) State the solution in words. Submit this in Word or pdf.

3. Avalon Campers manufactures small camper trailers. Demand for the next six months is expected to be as follows:

Month 1 2 3 4 5 6

Demand 70 100 150 120 85 60

The company ended the previous month (month 0) with an inventory of 30 units. They can produce a maximum of 120 trailers each month and it costs $4500 to manufacture a trailer. Any trailers manufactured but not sold will be subject to a one time inventory cost of $200 for that month. You may assume that the inventory holding cost for the 30 trailers at the beginning of the first month has already been accounted for in the previous year. and the previous months production level was 100 units. The company wishes to end this six-month planning period with an inventory of at least 20 units. The company wishes to minimize the sum of production level costs and inventory costs over the six-month planning horizon.