Hwk-5 - Backlog is allowed and the backlog cost is $800 per...

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Homework 5 Problem 1 is Due on Oct 16th 2008 Problem 2 is Due on Oct 9th 2008 1. Consider a production planning problem for the next 5 months. The demands for the 5 months are d 1 = 2 ,d 2 = 4 ,d 3 = 2 ,d 4 = 2 and d 5 = 3. If the decision for a month is to produce, then there is a setup cost of $4,000 and a unit production cost of $1,000. There is a unit holding cost of $300.
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Unformatted text preview: Backlog is allowed and the backlog cost is $800 per item. The initial inventory level is 0. Find the optimal production plan. 2. Problem #7 in Eric Denardos book, on page 107. 1...
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