Solve linear programming model-cost-minimizing production


A motorcycle manufacturer is determining its production schedule for the next 6 months. The cost of manufacturing a motorcycle during each month is provided in the file 1.xls. At the end of each month, a holding cost of $200 per motorcycle left in inventory is incurred. No more than 50 motorcycles can be stored in inventory at any point in time. Monthly demands for motorcycles are also given 1.xls. Assume that at the beginning of month 1, 25 completed motorcycles are in inventory. Also, this company can produce up to 200 motorcycles per month. Finally, each unit on hand at the end of month 6 (after demand is met) could be sold for $1000 per month. Using the shell provided in the file 1.xls, Solve a linear programming model to find a cost-minimizing production schedule that meets all demands on time.

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Operation Management: Solve linear programming model-cost-minimizing production
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