Question: Question 3 (1 mark): Consider an inventory problem with data shown in the table below. 100 Period 1 Period 2 Period 3 Period 4 Demand

Question 3 (1 mark): Consider an inventory
Question 3 (1 mark): Consider an inventory problem with data shown in the table below. 100 Period 1 Period 2 Period 3 Period 4 Demand 70 120 170 Production capacity 150 160 140 Unit production cost $1 $1.1 $1.2 $1.3 Inventory cost $.2 S.2 100 $.21 Formulate a cost-minimizing linear program. Clearly define all variables that you use. Assume that the opening inventory is zero & that no units of the product are required at the beginning of Period 5. Also assume that in each period, the production occurs before the demand. Solve the problem with LINDO LINGO to answer the following questions: (a) How many units should be produced in the four periods and what are the total costs? (b) What are the inventory levels between the periods? (c) What would happen if the production capacity in Period 1 would drop to 80? Attach the original printout to this exam

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!