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A company faces the following demands during the next three weeks: week 1, 2000 units; week 2, 1000 units; week 3, 1500 units. The unit production costs during each week are as follows: week 1, $130; week 2, $140; week 3, $150. A holding cost of $20 per unit is assessed against each week's ending inventory. At the beginning of week 1, the company has 500 units on hand. In reality, not all goods produced during a month can be used to meet the current month's demand. To model this fact, assume that only half of the goods produced during a week can be used to meet the current week's demands. a. Determine how to minimize the cost of meeting the demand for the next three weeks.

A company faces the following demands during the next three weeks: week 1, 2000 units; week 2, 1000 units; week 3, 1500 units. The unit production costs during each week are as follows: week 1, $130; week 2, $140; week 3, $150. A holding cost of $20 per unit is assessed against each week's ending inventory. At the beginning of week 1, the company has 500 units on hand. In reality, not all goods produced during a month can be used to meet the current month's demand. To model this fact, assume that only half of the goods produced during a week can be used to meet the current week's demands. a. Determine how to minimize the cost of meeting the demand for the next three weeks.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter3: Introduction To Optimization Modeling
Section: Chapter Questions
Problem 29P
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A company faces the following demands during the next three weeks: week 1, 2000 units; week 2, 1000 units; week 3, 1500 units. The unit production costs during each week are as follows: week 1, $130; week 2, $140; week 3, $150. A holding cost of $20 per unit is assessed against each week's ending inventory. At the beginning of week 1, the company has 500 units on hand. In reality, not all goods produced during a month can be used to meet the current month's demand. To model this fact, assume that only half of the goods produced during a week can be used to meet the current week's demands. a. Determine how to minimize the cost of meeting the demand for the next three weeks.
Transcribed Image Text:A company faces the following demands during the next three weeks: week 1, 2000 units; week 2, 1000 units; week 3, 1500 units. The unit production costs during each week are as follows: week 1, $130; week 2, $140; week 3, $150. A holding cost of $20 per unit is assessed against each week's ending inventory. At the beginning of week 1, the company has 500 units on hand. In reality, not all goods produced during a month can be used to meet the current month's demand. To model this fact, assume that only half of the goods produced during a week can be used to meet the current week's demands. a. Determine how to minimize the cost of meeting the demand for the next three weeks.
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ISBN:
9781337406659
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