Question: I have a multi-period inventory problem. There are four time periods and per-unit production costs and capacities are given as per the table below. Prod.

I have a multi-period inventory problem. There are four time periods and per-unit production costs and capacities are given as per the table below.

Prod. Cost Prod. Capacity Inv. Cost Inv. Capacity
1 50 100 150 170
2 4000 50 240 10
3 30 54 45 44
4 22 90

Additionally, units product of the product at each level of completion can be stored as inventory, at a per-unit cost and also subject to capacities.

Finally, demands are as follows:

Period 1 2 3 4
Demand 70 50 40 90

The problem is to establish a production and inventory plan that delivers all demands at minimum cost. Formulate the above problem as MCFNP and answer the following question:

Select ALL appropriate actions to formulate the problem:

1. Add an auxiliary node to accommodate for units produced for each period

2. Products must be produced below the inventory capacity for each period

3. There is no limit on units of products to be transferred to the next period

4. Add edges from Period m to m+1 (m = 1,2,3)

5. Edges from period to period (i.e. node 1 to node 2) has cij as production cost and uij as production capacity

6. From each node of Period 1 to 4, add an edge that points to the demand of that period

7. Write bi for each period as the net supply as -70, -50, -40 and -90

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