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MGMT 30600 – Quiz 2, Fall 2011
Name:
Section: ___________________________
Question 1.
(6 points) Snow Witch Toboggan and Sled is trying to plan their production
for the next two months. They would like to end November with at least 500 toboggans
and 400 sleds in inventory. Their factory has 800 hours of production capacity each
month. Their cost of holding inventory is 3% of production cost. Formulate a linear
program to minimize their total production and inventory holding costs.
Prod. cost ($)
October
demand
November
demand
Current
inventory
Unit production
time (minutes)
Toboggan
15
1000
2500
300
20
Sled
12
1000
2000
200
10
Let T
i
be the number of toboggans manufactured in month i.
Let S
i
be the number of sleds manufactured in month i.
Let IT
i
be the number of toboggans in inventory at the end of month of i.
Let IS
i
be the number of sleds in inventory at the end of month of i.
i
= 1 for October and 2 for November.


Let T
i
be the number of toboggans manufactured in month i.
Let S
i
be the number of sleds manufactured in month i.
Let IT
i
be the number of toboggans in inventory at the end of month of i.
Let IS
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This note was uploaded on 01/17/2012 for the course MGMT 306 taught by Professor Staff during the Spring '08 term at Purdue University.
 Spring '08
 Staff
 Management

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