Question: Linear programing ( LP ) Use the case below to answer the following question ( s ) A company produces a certain product and has
Linear programing LP
Use the case below to answer the following questions
A company produces a certain product and has the capacity to produce units per month
in regular time, and an additional units per month in overtime. The production cost of the
product varies by month due to changes in the material costs over time. The quantities of the
product to be delivered over the next six months have already been set. The delivery
requirements and production costs are given in the following table:
It is possible that the units produced in a month exceeds the delivery requirement. In such a
case, the unsold units are then carried in stock to the following month. The cost of carrying an
unsold unit in stock is per unit per month.
At the beginning of month there are units in stock and the company does not want to
have any unsold units at the end of month The company must determine the number of
units of the product to produce in regular time and in overtime each month to meet the delivery
requirement at minimum cost.
a Define the decision variables that will be needed to formulate a linear programming LP model for this problem.
b Formulate the Linear Programming LP model that represents this problem.
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