Question: Problem 2. A manufacturing line has three production stations, A, B, and C. In-process storage is possible between the stations, but at the monthly cost

Problem 2. A manufacturing line has three

Problem 2. A manufacturing line has three production stations, A, B, and C. In-process storage is possible between the stations, but at the monthly cost of $100 for storage between A and B and $150 between B and C. The storage would offset any station downtime in the preceding station(s). Income per item produced is $5 and the maximum monthly production rate is 1000 units. The downtimes for stations A, B, and C are given below Production Station A B Downtime Percentage 5 3 7 Determine the optimum income-cost relationship from the four possible configurations of in-process inventory management. Assume the station downtimes are statistically independent. (15 points)

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