Metal Fabricators, Inc. manufactures gas grill tanks, Model # 1420, for four original equipment manufacturers (OEMs). Demand is forecast to be as follows: Quarter 1 = 2,800 tanks, Quarter 2 = 3,400, Quarter 3 = 3,600, and Quarter 4 = 2,900. Due to a hedging program for sheet steel and increases in international tariffs, production cost per quarter vary as follows: Quarter 1 = $23.50 per tank, Quarter 2 = $28.00, Quarter 3 = $25.90, and Quarter 4 = $29.00. Due to production contracts with the OEMs, no shortages are allowed. Beginning inventory for Quarter 1 is 300 tanks. At the end of each quarter, inventory holding costs are $4.25 per tank. a. Formulate the problem as a linear programming model (see Supplement D). b. Solve the model in (a) using Excel Solver.

Metal Fabricators, Inc. manufactures gas grill tanks, Model # 1420, for four original equipment manufacturers (OEMs). Demand is forecast to be as follows: Quarter 1 = 2,800 tanks, Quarter 2 = 3,400, Quarter 3 = 3,600, and Quarter 4 = 2,900. Due to a hedging program for sheet steel and increases in international tariffs, production cost per quarter vary as follows: Quarter 1 = $23.50 per tank, Quarter 2 = $28.00, Quarter 3 = $25.90, and Quarter 4 = $29.00. Due to production contracts with the OEMs, no shortages are allowed. Beginning inventory for Quarter 1 is 300 tanks. At the end of each quarter, inventory holding costs are $4.25 per tank. a. Formulate the problem as a linear programming model (see Supplement D). b. Solve the model in (a) using Excel Solver.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

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