HW 6b Solutions

# HW 6b Solutions - Bammo Inventory Homework Solution STOR...

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Bammo Inventory Homework Solution STOR 112 40 points written work + 30 points computer work 1. Recall the data for the Bammo inventory problem: Period Capacity Demand Unit production cost 1 6000 2000 11 2 6000 8000 15 3 4000 4000 15 The initial inventory at the beginning of period 1 is 150 units. The minimum inventory to be allowed at the end of each period is 100 units (to prepare for a possible sudden surge in demand). The cost of storing a unit from period 1 to period 2 is 4.5 cents; from period 2 to period 3 is 3 cents; after period 3 is 3 cents. Note that even after period 3, we must have at least 100 units left, and each of these units will also incur 3 cents cost. Demand in each period must be satisﬁed exactly. (5 points) Solve the Bammo problem in Excel. To check your work: in a correct solution, the total cost is \$2035. Interpret your solution from Excel. Solution. the LP is min 0 . 11 X 1 + 0 . 15 X 2 + 0 . 15 X 3 + 0 . 045 I 1 + 0 . 03 I 2 + 0 . 03 I 3 s.t. X 1 - I 1 = 1850 X 2 + I 1 - I 2 = 8000 X 3 + I 2 - I

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HW 6b Solutions - Bammo Inventory Homework Solution STOR...

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