Formulate a mathematical model for KG International.
KG International produces T-shirts. KG International must decide how many T-shirts to produce each month. The company has decided to use a six-month planning horizon. The
During each month, there is enough production capacity to produce up to 30,000 T-shirts, and there is enough storage capacity to store up to 10,000 T-shirts after demand has occurred. (For simplicity, we assume that production occurs during the month, and demand occurs at the end of the month.)
The forecasted production costs per T-shirt for the next three months are $20, $17, and $22, respectively. The holding cost incurred per T-shirt held in inventory at the end of any month is 10% of the production cost for that month. KG International wants to determine the production
Formulate a mathematical model for KG International.
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