A company wants to plan production for the ensuing year to minimize the combined cost of production and inventory costs. In each quarter of the year, demand is anticipated to be 130, 160, 250, and 150 units, respectively. The plant can produce a maximum of 200 units each quarter. The product can be manufactured at a cost of $15 per unit during the first quarter, however the manufacturing cost is expected to rise by $1 per quarter. Excess production can be stored from one quarter to the next at a cost of $1.50 per unit, but the storage facility
A company wants to plan production for the ensuing year to minimize the combined cost of production and inventory costs. In each quarter of the year, demand is anticipated to be 130, 160, 250, and 150 units, respectively. The plant can produce a maximum of 200 units each quarter. The product can be manufactured at a cost of $15 per unit during the first quarter, however the manufacturing cost is expected to rise by $1 per quarter. Excess production can be stored from one quarter to the next at a cost of $1.50 per unit, but the storage facility can hold a maximum of 60 units. How should the production be scheduled so as to minimize the total costs?
Please answer using python
Formulate an LP model to minimize costs. Solve the LP (provide exact values for all variables and the optimal objective function).
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