Please use the excel solver to solve the following problem. And make it simple>

Question

Please use the excel solver to solve the following problem.

And make it simple> also could you please explain to me why did you do each steps. please I need it easy to understand.

Thank you so much

Please the excel solver to solve the following problem: Sales forecasts for the next four months are (in thousand of units): October 10 November 16 December 10 January 12 production can be increased from one month to the next at a cost of S2 per unit and it can be decreased at a cost of $0.50 per unit. In addition, inventory left at the end of a month can be stored at a cost of $1 per unit per month. Given current demand, there will be no inventory at the end of No inventory is desired at the end of January. Formulate a linear program that minimizes the total cost (varying production rateinventory costs) of meeting the above demand.

Explanation / Answer

Solving with these parameters we get

Month Production Inventory variable cost October a k 2 or 0.5 p November b l 2 or 0.5 q December c m 2 or 0.5 r January d n 2 or 0.5 s Total a+b+c+d L+l+m+n Total Cost pa+qb+rc+sd+k+L+m+n Objective Function Minimize pa+qb+rc+sd+k+L+m+n Subject to p = 2 if a > 12000 p = 0.5 if a < 12000 q = 2 if b > a q = 0.5 if b < a r = 2 if c >b r = 0.5 if c < b s = 2 if d >c s = 0.5 if d < c

Solving with these parameters we get

September Production 12000 October November December January Total Production a b c d 13000 13000 11000 11000 48000 Demand 10000 16000 10000 12000 48000 Inventory k l m n Imventory 3000 0 1000 0 4000 Variable Cost p q r s 2 0 0.5 0 31500 Inventory cost -10000 -36000 -72000 -120000 4000 Total Cost pa+qb+rc+sd+k+L+m+n 35500 Production Levels are Demand Inventory cost October 13000 10000 3000 29000 November 13000 16000 0 December 11000 10000 1000 6500 January 11000 12000 0 Total 48000 48000 4000 35500 Total Cost 35500

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---