The way the company can minimize the cost of meeting the demand for cars on time. Linear programming: It is a mathematical modeling procedure where a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.

Question

The forecast for each week of a four-week schedule is 50 units. The MPS rule is to schedule production if the projected on-hand Inventory would be negative without it. Customer orders (committed) are follows: Week Customer Order 1 52 35 20 12 Use a production lot size of 75 units and no beginning Inventory. Determine the available-to-promise (ATP) quantities for each period. Note: Leave no cells blank - be certain to enter "0" wherever required. Period ATP 1 2 3

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Question

Chapter 4, Problem 77P

Summary Introduction

To determine: The way the company can minimize the cost of meeting the demand for cars on time.

Linear programming:

It is a mathematical modeling procedure where a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.

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