Business, 16.04.2020 03:00 Keo247

The production manager for the Classic Boat Corporation must determine how many unitsof the Classic 21 model to produce over the next four quarters. The company has a beginninginventory of 100 Classic 21 boats, and demand for the four quarters is 2000 units inquarter 1, 4000 units in quarter 2, 3000 units in quarter 3, and 1500 units in quarter 4. Thefirm has limited production capacity in each quarter. That is, up to 4000 units can be producedin quarter 1, 3000 units in quarter 2, 2000 units in quarter 3, and 4000 units in quarter4. Each boat held in inventory in quarters 1 and 2 incurs an inventory holding cost of$250 per unit; the holding cost for quarters 3 and 4 is $300per unit. The production costsfor the first quarter are $10,000 per unit; these costs are expected to increase by 10% eachquarter because of increases in labor and material costs. Management specified that theending inventory for quarter 4 must be at least 500 boats. a.) forumlate a linear programming model that can be used to determine the production schedule that will minimize the total cost of meeting demand in each quarter subject to the production capacities in each quarter and also to the required ending inventory in quarter 4.

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The production manager for the Classic Boat Corporation must determine how many unitsof the Classic...

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