For the next 3 months a dealer in Commodity a can buy from the producer and sell
ID: 407979 • Letter: F
Question
For the next 3 months a dealer in Commodity a can buy from the producer and sell to the retailer units of A at the following prices per unit.
A Buy($) Sell($)
Month 1 31 40
Month 2 33 44
Month 3 36 48
During any particular month, the dealer can buy at most 450 units and sell at most 600 units and, moreover, can rent storage space from a local warehouse for up to 300 units at any one time at $2/ unit/month. Determine an optimal buying, selling, and storing program, assuming the dealer has no units of A on hand initially and wants one on hand at the termination of the 3-month period
Explanation / Answer
31bm1+33bm2+36bm3<450q
300qm1+m2+m3<2
40sm1+44sm2+48sm3<600q
bm1,bm2,bm3,qm1,m2,m3,sm1,sm2,sm3<0
Explanation:
bm=buying month,
sm=selling month,
q=quantity
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