Metal Fabricators, Inc. manufactures gas grill tanks, Model # 1420, for four original equipment manufacturers (OEMs). Demand is forecast to be as follows: Quarter 1 = 2,800 tanks, Quarter 2 = 3,400, Quarter 3 = 3,600, and Quarter 4 = 2,900. Due to a hedging program for sheet steel and increases in international tariffs, production cost per quarter vary as follows: Quarter 1 = $23.50 per tank, Quarter 2 = $28.00, Quarter 3 = $25.90, and Quarter 4 = $29.00. Due to production contracts with the OEMs, no shortages are allowed. Beginning inventory for Quarter 1 is 300 tanks. At the end of each quarter, inventory holding costs are $4.25 per tank. a. Formulate the problem as a linear programming model (see Supplement D). b. Solve the model in (a) using Excel Solver.
SOLVE USING EXCEL
Metal Fabricators, Inc. manufactures gas grill tanks, Model # 1420, for four original equipment manufacturers (OEMs). Demand is
a. Formulate the problem as a linear programming model (see Supplement D).
b. Solve the model in (a) using Excel Solver.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
