Let’s say that Glass For Sale, Inc. manufacturers replacement glass for the home remodeling industry. In January, the company produces fifteen-thousand windows and ended the month with nine-thousand windows in inventory. Glass For Sale’s management team would like to develop a production schedule for the next three months. A smooth production schedule is obviously desirable due to the fact that it maintains the current workforce and provides a similar month-to-month operation. However, given the sales forecasts, the production capacities, and the storage capabilities as shown in Table two, the management team does not think a smooth production schedule with the same production quantity each month is possible. The company’s cost accounting department estimates that increasing production by one window from one month to the next will increase total costs by one dollar for each unit increase in the production level. In addition, decreasing production by one unit from one month to the next will increase total costs by sixty-five cents for each unit decrease in the production level. Ignoring production and inventory carrying costs, please formulate a linear programming model that will minimize the cost of changing production levels while still satisfying the monthly sales forecasts.
Let’s say that Glass For Sale, Inc. manufacturers replacement glass for the home remodeling
industry. In January, the company produces fifteen-thousand windows and ended the month
with nine-thousand windows in inventory. Glass For Sale’s management team would like to develop a production
does not think a smooth production schedule with the same production quantity each month is possible. The company’s cost accounting department estimates that increasing production by one window from one month to the next will increase total costs by one dollar for each unit increase in the production level. In addition, decreasing production by one unit from one month to the next will increase total costs by sixty-five cents for each unit decrease in the production level.
Ignoring production and inventory carrying costs, please formulate a linear programming model that will minimize the cost of changing production levels while still satisfying the monthly sales forecasts.
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