Week Computer orders 1 105 2 170 3 230 4 180 5 150 6 250

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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IT Computer Services assembles its own brand of per-sonal computers from component parts it purchases over-seas and domestically. IT sells most of its computerslocally to different departments at State University aswell as to individuals and businesses in the immediategeographic region.IT has enough regular production capacity to produce160 computers per week. It can produce an additional 50computers with overtime. The cost of assembly, inspect-ing, and packaging a computer during regular time is$190. Overtime production of a computer costs $260.Further, it costs $5 per computer per week to hold a com-puter in inventory for future delivery. IT wants to be ableto meet all customer orders with no shortages in order toprovide quality service. IT’s order schedule for the next6 weeks is as follows:IT Computers wants to determine a schedule that will in-dicate how much regular and overtime production it willneed each week in order to meet its orders at the mini-mum cost. The company wants no inventory left over atthe end of the six-week period. Formulate and solve alinear programming model for this problem.

Week
Computer orders
1
105
2
170
3
230
4
180
5
150
6
250
Transcribed Image Text:Week Computer orders 1 105 2 170 3 230 4 180 5 150 6 250
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