Chapter 3.10, Problem 1P

Explanation of Solution

Minimization at the net cost:

• Assume “${\text{p}}_{\text{m}}$” be the production during the month “m” and “${\text{i}}_{\text{m}}$” be the inventory at the end of the month “m”.
• The net cost minimization “mincost” is computed as follows,

${\text{mincost=5p}}_1+8{\text{p}}_2+4{\text{p}}_3+7{\text{p}}_4+2{\text{i}}_1+2{\text{i}}_2+2{\text{i}}_3+2{\text{i}}_4-6{\text{i}}_4$ for all the variables >= 0

Where,

“${\text{i}}_1{\text{=p}}_1-50$” that denotes the inventory at the end of month “1”