Question: A linear programming computer package is needed. EZ-Windows, Inc., manufactures replacement windows for the home remodeling business. In January, the company produced 15,000 windows and
A linear programming computer package is needed.
EZ-Windows, Inc., manufactures replacement windows for the home remodeling business. In January, the company produced 15,000 windows and ended the month with 9,000 windows in inventory. EZ-Windows' management team would like to develop a production schedule for the next three months. A smooth production schedule is obviously desirable because it maintains the current workforce and provides a similar month-to-month operation. However, given the sales forecasts, the production capacities, and the storage capabilities as shown, the management team does not think a smooth production schedule with the same production quantity each month possible.
| February | March | April | |
| Sales forecast | 15,000 | 16,500 | 20,000 |
| Production capacity | 14,000 | 14,000 | 18,000 |
| Storage capacity | 6,000 | 6,000 | 6,000 |
The company's cost accounting department estimates that increasing production by one window from one month to the next will increase total costs by $1.00 for each unit increase in the production level. In addition, decreasing production by one unit from one month to the next will increase total costs by $0.65 for each unit decrease in the production level. Ignoring production and inventory carrying costs, formulate a linear programming model that will minimize the cost (in dollars) of changing production levels while still satisfying the monthly sales forecasts. (Let F = number of windows manufactured in February, M = number of windows manufactured in March, A = number of windows manufactured in April, I1 = increase in production level necessary during month 1, I2 = increase in production level necessary during month 2, I3 = increase in production level necessary during month 3, D1 = decrease in production level necessary during month 1, D2 = decrease in production level necessary during month 2, D3 = decrease in production level necessary during month 3, s1 = ending inventory in month 1, s2 = ending inventory in month 2, and s3 = ending inventory in month 3.)
Min: I_1+I_2+I_3+0.65D_1+0.65D_2+0.65D_3
February Demand:
March Demand:
April Demand:
Change in February production:
Change in March production:
Change in April production:
February storage: s_1 6000
March Storage capacity: s_2 6000
April Storage capacity: s_3 6000
Find the optimal solution:
Cost = $
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