Question: Problem 2: Production Planning Initial inventory Holding cost as % of prod cost Returned products Month Prod cost/unit Prod capacity Anticipated new sales 50' 5%


Problem 2: Production Planning Initial inventory Holding cost as % of prod cost Returned products Month Prod cost/unit Prod capacity Anticipated new sales 50' 5% 2%: $95.00 540: 400 2: $105.00 _ 600 450 3 . $100.00 420 550 4 $80.00 420 600 5: $75.00 _ 455 400 6 $95.00 600 350 A manufacturer of motorcycle accessories sells wants to optimize the production schedule for its bestselling motorcycle stand. Relevant inputs for the six-month planning horizon are in the file attached below. 2% of each month's new sales (= anticipated new sales) will be returned for a refund (for a reason other than defect). Assume that these returns will happen in the following month, and that in the month after that (allowing time for inspection), the product can be sold as an \"open-box\" product. The company assesses holding costs on all items held in stock from month-tomonth. This also applies to returns. The cost of holding products is always based on the current month's production cost, even if some of the products being held are returns from the previous month. The company assigns 5% of monthly production cost to each item held in inventory between months. All demand from anticipated sales must be met on time and production capacity cannot be exceeded. Configure and run Solver to find a production schedule that optimizes total costs
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