In Preparation for the winter season, a clothing company is manufacturing goose overcoats. The selling season for the company is only 4 months long and lasts from November 1 through February 28. The sales division has forecasted the following demands for next year.

MonthDemandNovember30December40January30February20All overcoats sold by this store are purchased from outside sources. The unit purchasing cost is $4 per overcoat; however, the supplier will only sell in lots of 10,20,30,40, or 50 units. Any orders for more than 50 or less than 10 will not be accepted. The ordering cost is a fixed cost of $2. Due to large in-process inventories, the store will carry no more than 40 units of coats in inventory at the end of any one month. Carrying charges are $0.2 per overcoat per month. Assuming that it is desired to have both the beginning and ending inventory at zero, find an ordering policy that will minimize total seasonal costs using Dynamic Programming. 

Answer rating: 100% (QA)

To solve this with dynamic programming lets break it down step by step Assume that we end the month ... View the full answer