A company faces the following demands during the next 3 weeks

# A company faces the following demands during the next 3 weeks

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A company faces the following demands during the next 3 weeks: Week 1, 20 units; week 2, 10 units; week 3, 15 units. The unit production costs during each week are as follows: week 1, \$13; week 2, \$14; week 3, \$15. A holding cost of \$2 per unit is assessed against each week’s ending inventory. At the beginning of week 1, the company has 5 units on hand . In reality not all goods produced during a month can be used to meet the current month’s demand. To model this fact, we assume that
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Unformatted text preview: only half of the goods produced during a week can be used to meet the current weeks demands. Determine how to minimize the cost of meeting the demand for the next 3 weeks. Week 1 Week 2 Week 3 Demand 20 units 10 units 15 units Cost of production/Unit 13 14 15 Per unit holding cost \$2 \$2 \$2 Only half the goods produced during the week can be used to meet the current weeks demands....
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## This note was uploaded on 01/03/2011 for the course COMM 290 taught by Professor Brian during the Winter '09 term at The University of British Columbia.

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