Question: (Inventory problem) Max.Jump LLC plans the monthly trampoline production quantities for the next quarter. Presently, MaxJump has an inventory of 20 tram- polines. During each

(Inventory problem) Max.Jump LLC plans the

(Inventory problem) Max.Jump LLC plans the monthly trampoline production quantities for the next quarter. Presently, MaxJump has an inventory of 20 tram- polines. During each month, MaxJump can manufacture up to 150 trampolines using regular-time labor. The demand and cost of production using regular-time labor during the three months is given below January February March Demand 110 120 130 Cost 50 60 40 In addition, Max Jump can manufacture more trampolines, costing 25% per unit with overtime labor. A per unit inventory cost of $10 per unit is charged at the end of each month. The warehouse can fit up to 25 trampolines. MaxJump's man- agement wants to develop a plan to minimize the total production and inventory costs for the quarter. (a) Formulate an LP in parameterized form. (b) Assume you pay a monthly 2% interest on cost incurred each month. Rewrite the objective to account for interest payments to minimize the total cost at the end of the planning horizon

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!