Question: Regular Prod. Capacity = 2500 units/qtr Overtime Prod. Capacity = 500 units/qtr Subcont Prod. Capacity = 2000 units/qtr Inventory Capacity = 800 units/qtr Beginning Inventory

Regular Prod. Capacity = 2500 units/qtr Overtime

Regular Prod. Capacity = 2500 units/qtr Overtime Prod. Capacity = 500 units/qtr Subcont Prod. Capacity = 2000 units/qtr Inventory Capacity = 800 units/qtr Beginning Inventory = 700 units Regular Prod. Cost = $10/unit Overtime Prod. Cost = $ 14/unit Subcont Prod. Cost = $15/unit Inventory Cost = $5/unit/qtr Backordering Cost = $16/unit/qtr Quarter Demand 1 2400 2 5900 3 1300 Linear programming is to be used to determine a production plan strategy of Level Production, Overtime, and Subcontracting. 1. Formulate the Objective Function (note that there are 3 quarters). 2. Formulate all Constraints (standardized). 3. How many decision variables are in the model? 4. How many constraints are in the model

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