Suppose that you have three productsA, B, and Cand four periods. The production costs by product and
Question:
Suppose that you have three productsA, B, and Cand four periods.
The production costs by product and period are as follows:
Production cost | |||||
Product | Period | ||||
1 | 2 | 3 | 4 | Limit | |
A | 10.38 | 10.38 | 10.38 | 10.38 | 600 |
B | 26.47 | 26.47 | 26.47 | 26.47 | 750 |
C | 60.39 | 60.39 | 60.39 | 60.39 | 1,600 |
The inventory storage costs by product and period are as follows:
Inventory cost | ||||
Product | Period | |||
1 | 2 | 3 | 4 | |
A | 0.38 | 0.39 | 0.54 | 0.69 |
B | 0.45 | 0.43 | 0.61 | 0.73 |
C | 0.47 | 0.6 | 0.62 | 0.8 |
The estimated demand by product and period is as follows:
Demand | ||||
Product | Period | |||
1 | 2 | 3 | 4 | |
A | 480 | 588 | 505 | 425 |
B | 879 | 840 | 885 | 561 |
C | 1,592 | 1,458 | 1,552 | 1,455 |
The initial and required final inventories are as follows:
Inventory | ||
Product | Initial | Final |
A | 780 | 1,012 |
B | 691 | 502 |
C | 1,006 | 1,107 |
A new manager has somewhat rationalized the production costs (they are now the average of the previous ones). This rationalization has introduced production limits per period, as shown above.
Use Solver to determine the production schedule that will minimize the overall costs for both production and inventory and that will meet the demand, have the final inventory, and never have the inventory be negative. What is the total cost? Round your answer to the nearest dollar.