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On the tab labeled Network Diagram, I have provided a visual representation of the network for Problem #10 on Page 225. On the tab...
Month1Demand 420Production Cost 49.00Production Capacity 500Month 2Demand 580Production Cost 45.00Production Capacity 520Month3Demand 310Production Cost 46.00Production Capacity 450Month 4Demand 540Production Cost 47.00Production Capacity 550Acme Manufacturing makes a variety of household appliances at a single manufacturing facility. The expected demand for one of these application during the next four months is shown above with expected production costs and the expected capacity for producing these items.Acme estimates it costs $1.50 per month for each unit of this appliance carried in inventory at the end of each month. Currently, Acme has 120 units in inventory on hand for this product. to maintain a level workforce, the company wants to produce at least 400 units per month. The company also want to maintain a safety stock of at least 50 units per month. Acme wants to determine how many of each appliance to manufacture during each of the next four months to meet the expected demand at the lowest possible total cost.
