Problem $3$

$(25$ marks$)$

ABC Toys Company is trying to schedule production of two very popular toys for the next

three months: a rocking horse and a scooter. Information about both toys is given below.

Develop a model that would tell the company how many of each toy to produce during each

month. You are to minimize total cost. Inventory cost will be levied on any items in

inventory on June $30,$ July $31,$ or August $31$ after demand for the month has been satisfied.

Your model should make use of the relationship:

Beginning inventory $+$ Production $-$ Demand $=$ Ending inventory

for each month. The company wants to end the summer with $150$ rocking horses and to

have $60$ scooters as beginning inventory for September $1.$

Provide a computer solution to the model. To show your work, include a screen capture of

the answer you obtained on a computer.