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Copy of MGMT 101_ Assignment 3 .pdf - Problem 1 Budan Tools...

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Problem 1BudanToolsManufacturesgardentools.Itusesinventory,overtimeand subcontracting to absorb demandfluctuations. Expected demand, regular and overtime production capacity, and subcontracting capacity are providedin the following table for the next four quarters of its basic line of steel garden tools.QuarterDemandRegularCapacityOvertimeCapacitySubcontractingCapacity19000900010003000212000100001500300031600012000200030004190001200020003000The regular production cost per unit is $20, the overtime cost per unit is $25, the cost to subcontract a unit is $27, theinventory carrying cost is $2 per unit. The company has 300 units in inventory at the beginning of the year. Determinethe optimal production schedule for the four quarters to minimize total costs. Model and solve as a LP (hint: you canuse the network model to solve this problem)
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Term
Fall
Professor
OSKOOROUCHI

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