Question: Consider the following multiperiod, multiproduct Production - Inventory problem. Suppose that we are examining periods = 1 , . . . , , and some
Consider the following multiperiod, multiproduct ProductionInventory problem. Suppose that we are examining periods and some n products There is an initial inventory of that is available at hand for each product We need to principally determine the level of production for each product during each of the periods so as to meet the forecasted demand for each product during each period when it occurs, at a minimal total cost. To take advantage of varying demand and costs, we are permitted to produce excess quantities to be stored for later use. However, each unit of product consumes storage space and incurs storage cost of during for The total storage space anticipated to be available for these products during period is Furthermore, each unit of product requires hours of labor to produce, where the labor cost per hour when producing a unit of product during period is given by for The total number of labor hours available to manufacture these products during period is given by Formulate a linear program to solve this productioninventory control system problem, prescribing production as well as inventory levels for each product over each time period.
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