Chapter 3, Problem 43RP

Explanation of Solution

Cost-minimizing schedule:

• Assume the following,
  • Let “${\text{NYD}}_{\text{m}}$” be the units of drug produced during the month “m” at New York.
  • Let “${\text{CD}}_{\text{m}}$” be the units of drug made during the month “m” at Chicago.
  • Let “${\text{I}}_{\text{m}}$” be the inventory at the end of month “m”.
• The objective function is as follows,

$\text{Min z=8}{\text{.62NYD}}_1+8.7{\text{NYD}}_2+8.9{\text{NYD}}_3+8.4{\text{CD}}_1+8.75{\text{CD}}_2+9{\text{CD}}_3+0.26{\text{I}}_1+0.12{\text{I}}_2+0.12{\text{I}}_3$

• The above function subject to the following conditions,
  • “${\text{NYD}}_{\text{j}}\le 30$” for “$\text{j=1,2,3}$” and this represents the units of drugs to be produced at New York during the month “j” should be less than or equal to “30”