Question: Problem 1 . ABC Manufacturing produces a perishable product that can be stored for only two days after the day of its production. ( For
Problem ABC Manufacturing produces a perishable product that can be stored for only two
days after the day of its production. For example, if a batch of the product is manufactured
on Monday, that batch can be used to meet the demand on Monday, Tuesday, and
Wednesday only, and the remainder of the batch needs to be discarded on Thursday. The
setup cost ABC incurs per production order is $ and the holding cost is $ per unit per
day. The demand for the product over the next seven days is shown below.
ABC would like to determine the production plan for this product over the next seven days
ie how much to produce and when with the goal of minimizing total setup and inven
tory holding costs. Determine the optimal production plan for ABC. If there are multiple
production plans that yield the optimal cost, show all of them for full credit.
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