Donovan enterprises produces electric mixers

Reference no: EM13881662

Donovan Enterprises produces electric mixers. Demands for the next four quarters are: 40000, 20000, 30000,and 70000. Each quarter's demand must be satisfied in the same quarter. Production cost is estimated to be $30 per mixer. Due to limited number of machines, production is limited at a maximum of 50000 per quarter. Excess production can be stored in the inventory to satisfy future demand. However, finance department requires that the inventories cannot exceed 30000 mixers. Donovan incurs a holding cost of $2.40 per mixer per quarter. At the beginning of quarter 1, 6000 mixers are available.

Formulate an LP to develop a 4-quarter production plan to satisfy Donovan's demand requirements at the minimum total cost.

Reference no: EM13881662

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