A company estimates the demand for its products for the next three periods as follows. The first period is 20 units, the second period is 10 units, and the third period is 15 units. The manufacturing costs for producing the product are as follows: period 1—$13; period 2— $14; period 3—$15. If the number of products in each period exceeds demand in that period, the product will be stored and a holding cost of $2 per unit is incurred. It is known that at the beginning of the period the company has 5 units of beginning inventory. In reality, not all products available in a period are able to meet demand in that period. To model this, it is assumed that only half of the available product can be used to meet demand in the period. In other words, the minimum number of products available in each period is double the demand for that period. Develop a suitable mathematical model for this case!
A company estimates the demand for its products for the next three periods as follows. The first period is 20 units, the second period is 10 units, and the third period is 15 units. The
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