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During the next four months, a customer requires, respectively, 500, 650, 1000, and 700 units of a commodity, and no backlogging is allowed (that is, the customer's requirements must be met on time). Production costs are $50, $80, $40, and $70 per unit during these months. The storage cost from one month to the next is $20 per unit (assessed on ending inventory). It is estimated that each unit on hand at the end of month 4 can be sold for $60. Assume there is no beginning inventory. Determine how to minimize the net cost incurred in meeting the demands for the next four months. Question #1: According to your optimal solution, what is the production quantity for month 3? Question #2: According to your optimal solution, what is the total cost? (Please show all the fields input, and the solver box so I can see which cells you chose, etc.)

During the next four months, a customer requires, respectively, 500, 650, 1000, and 700 units of a commodity, and no backlogging is allowed (that is, the customer's requirements must be met on time). Production costs are $50, $80, $40, and $70 per unit during these months. The storage cost from one month to the next is $20 per unit (assessed on ending inventory). It is estimated that each unit on hand at the end of month 4 can be sold for $60. Assume there is no beginning inventory. Determine how to minimize the net cost incurred in meeting the demands for the next four months. Question #1: According to your optimal solution, what is the production quantity for month 3? Question #2: According to your optimal solution, what is the total cost? (Please show all the fields input, and the solver box so I can see which cells you chose, etc.)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter11: Simulation Models
Section: Chapter Questions
Problem 47P
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During the next four months, a customer requires, respectively, 500, 650, 1000, and 700 units of a commodity, and no backlogging is allowed (that is, the customer's requirements must be met on time). Production costs are $50, $80, $40, and $70 per unit during these months. The storage cost from one month to the next is $20 per unit (assessed on ending inventory). It is estimated that each unit on hand at the end of month 4 can be sold for $60. Assume there is no beginning inventory. Determine how to minimize the net cost incurred in meeting the demands for the next four months. Question #1: According to your optimal solution, what is the production quantity for month 3? Question #2: According to your optimal solution, what is the total cost? (Please show all the fields input, and the solver box so I can see which cells you chose, etc.)
Transcribed Image Text:During the next four months, a customer requires, respectively, 500, 650, 1000, and 700 units of a commodity, and no backlogging is allowed (that is, the customer's requirements must be met on time). Production costs are $50, $80, $40, and $70 per unit during these months. The storage cost from one month to the next is $20 per unit (assessed on ending inventory). It is estimated that each unit on hand at the end of month 4 can be sold for $60. Assume there is no beginning inventory. Determine how to minimize the net cost incurred in meeting the demands for the next four months. Question #1: According to your optimal solution, what is the production quantity for month 3? Question #2: According to your optimal solution, what is the total cost? (Please show all the fields input, and the solver box so I can see which cells you chose, etc.)
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