Question: please solve using excel solver! im stuck on a certain part! thank you. Upton The Upton Corporation manufactures heavy-duty air compressors for the home and

please solve using excel solver! im stuck on a certain part! thank you. please solve using excel solver! im stuck on a
Upton The Upton Corporation manufactures heavy-duty air compressors for the home and light industrial market. Upton is presently trying to plan its production and inventory levels for the next six months. Because of seasonal fluctuations in utility and raw material costs, the per unit cost of producing air compressors varies from month to month - as does the demand for air compressors. Production capacity also varies from month to month due to differences in the number of working days, vacations, and scheduled maintenance and training. The following table summarizes the monthly production costs, demands, and production capacity Upton's management expects to face over the next six months. Month 2. 3 4 5 6 Unit Production Cost $240 $250 $265 $285 $280 $260 Units Demanded 1.000 4,500 6,000 5,500 3,500 4,000 Maximum Production 4,000 3,500 4.000 4,500 4,000 3,500 Give the size of Upton's warehouse, a maximum of 6,000 units can be held in inventory at the end of any month. The owner of the company likes to keep at least 1, 500 units in inventory as safety stock to meet unexpected demand contingencies. To maintain a level workforce, the company wants to produce no less than one half of its maximum production capacity each month. Upton's controller estimates that the cost of carrying a unit in any given month is approximately equal to 1.5% of the unit production cost in the same month. Upton estimates the number of units carried in inventory each month by averaging the beginning and ending inventory for each month. There are 2,750 units currently in inventory Formulate a linear program to find a cost-minimizing production plan for the next six months

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!