Silver Star Bicycle Company will be manufacturing both men’s and women’s models of its Easy-Pedal bicycles during the next two months. Management wants to develop a production schedule indicating how many bicycles of each model should be produced in each month. Current demand forecasts call for 150 men’s and 125 women’s models to be shipped during the first month and 200 men’s and 150 women’s models to be shipped during the second month. Additional data are shown: Model Production Costs Current Inventory Men’s $120 20 Women’s 90 30 The company charges monthly inventory at the rate of 2% of the production cost based on the inventory levels at the end of the month. The company would like to have at least 25 units of each model in inventory at the end of the two months. Formulate this problem as a linear programming model so that a production schedule can be established in order to minimize production and inventory costs and satisfies the labor-smoothing, demand, and inventory requirements.
-
Silver Star Bicycle Company will be manufacturing both men’s and women’s models of its Easy-Pedal bicycles during the next two months. Management wants to develop a production
schedule indicating how many bicycles of each model should be produced in each month. Current demandforecasts call for 150 men’s and 125 women’s models to be shipped during the first month and 200 men’s and 150 women’s models to be shipped during the second month. Additional data are shown:
|
Model |
Production Costs |
Current Inventory |
|
Men’s |
$120 |
20 |
|
Women’s |
90 |
30 |
The company charges monthly inventory at the rate of 2% of the production cost based on the inventory levels at the end of the month. The company would like to have at least 25 units of each model in inventory at the end of the two months.
Formulate this problem as a linear programming model so that a production schedule can be established in order to minimize production and inventory costs and satisfies the labor-smoothing, demand, and inventory requirements.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
