### Determining its assembly schedule

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##### Reference no: EM13966195

A local high-tech company is determining its assembly schedule for the next 6 months. Assembly cost per drone is \$100. In addition, if drones are to be assembled, there is a setup cost of \$12,000 per month. At the end of each month, there is a holding cost of \$25 per unit left in inventory. No more than 200 drones can be stored in inventory at any point in time. Monthly demands for units are projected to be as follows: 140 in month 1; 175 in month 2; 175 in month 3; 146 in month 4; 169 in month 5; and 200 in month 6. At the beginning of month 1, 20 completed drones are in inventory. Finally, this company can complete up to 325 units per month. Formulate and solve an integer programming model to find the minimum cost of meeting the schedule.

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