Question: Hi please help with this LP problem Problem 1 (name the Excel file as A1Probleml_yourLastNameFirstName) 40 points total NeonStomp is a power module manufacturing company.

Hi please help with this LP problem Hi please help with this LP problem Problem 1

Problem 1 (name the Excel file as A1Probleml_yourLastNameFirstName) 40 points total NeonStomp is a power module manufacturing company. Currently, the power module market is facing volatile demands. In order to minimize its production cost for the next four quarters, NeonStomp attempts to plan its production for the next year by analyzing the quarterly demand, production costs, inventory cost etc. It is estimated that NeonStomp's production cost for the next four quarters will be constant. However, the market demand and NeonStomp's production capacity would vary from quarter to quarter. The maximum amount of inventory that can be held is 12,000 units and NeonStomp's management wants to keep at least 3,000 units on hand. Quarterly inventory holding cost is 3% of the production cost. The company estimates the number of units carried in inventory each month by averaging the beginning and ending inventory for each month. There are currently 5,000 units in inventory. The company wants to produce at no less than half of its maximum capacity in any quarter. The following table shows key data for NeonStomp analysis. Quarter 1 2 3 4 Unit Production Cost $ 300 $ 300 $ 300 $ 300 Units Demanded 2,000 9,000 12,000 11,000 Maximum Production 8,000 7,000 8,000 9,000 a. Formulate an LP model for this problem. (Please note, you need to write the complete mathematical model) (10 points) b. Implement your model in a spreadsheet and solve it. (20 points) c. What is the optimal solution? (10 points)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!