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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