Question: It costs $12 to make a single unit using regular production and $15 to make a single unit using overtime production. Total overtime production is

It costs $12 to make a single unit using regular production and $15 to make a single unit using overtime production. Total overtime production is limited to 500 units for the five-month period. The manufacturing plant has a regular production capacity of 250 units per month and 50 units in inventory at the start of the planning period. There is a $5 per unit charge for holding inventory at the end of each month and a limit of 250 units ending inventory for any period. Develop an objective function and constraints to solve this problem.

Month

Forecast

January

250

February

200

March

300

April

400

May

500

Formula SEE RED TOMATO EXAMPLE

MIN =

CONSTRAINTS (Subject to):

(1.)

(2.)

(3.)

(4.)

(5.)

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