Question: At the year - end, the warehouse is completely empty. So the starting inventory is zero. The maximum capacity of the warehouse is 3 5

At the year-end, the warehouse is completely empty. So the starting inventory is zero. The maximum capacity of the warehouse is 3500. Holding costs for both types is $0.05 per unit per month. The manufacturer wants to have at least 1600 AE 230s and 1800 AE 330s in the warehouse at the beginning of May.
Production costs are $1.50 per unit for AE230 and $1.80 per unit for AE 330. Because demand for raw materials is rising, production costs are expected to rise by $0.10 each month for the four months.

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