We would like to formulate an integer program to minimize


Carco uses robots to manufacture cars. The following demands for cars must be met (not necessarily on time, but all demands must be met by end of quarter 4): Quarter 1 Quarter 2 Quarter 3 Quarter 4 Demand 600 800 500 400 At the beginning of the quarter, Carco has 2 robots. Robots can be purchased at the beginning of any quarter for $5,000 per robot, but a maximum of 2 per quarter can be purchased. Each robot can build as many as 200 cars per quarter. Each quarter, a robot incurs $500 in maintenance costs (even if it is not used to build any cars). Robots can also be sold at the beginning of any quarter for $3,000. At the end of each quarter, a holding cost of $200 per car is incurred. If any demand is backlogged, then a cost of $300 per car is incurred for each quarter the demand is backlogged. At the end of quarter 4, Carco must have at least 2 robots. We would like to formulate an integer program to minimize the total cost incurred in meeting the next four quarters’ demands for cars.

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Operation Management: We would like to formulate an integer program to minimize
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