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Ginny Rait is the general manager for N.R.G., Inc., a company producing two types of electric generators - the BR54 and the BR49. Orders have been received, and a production schedule is to be set up for the next three months. Generators may be produced in one month and stored until the next month. However, the cost of holding these in inventory is 1% of the cost per month. The BR54 costs $80 each and the BR49 costs $95 each. The company can produce a total of 1,100 units each month. Currently there are 50 units of each type in the warehouse, and at the end of October, the company would like to have 100 units of the BR54 and 150 units of the BR49 in stock. The demand for each product in each month is given below:
BR54
BR49
August
320
450
September
740
420
October
500
480
Formulate this as a linear programming problem to minimize cost. How many units of each type should be produced each month? What is the total cost of thissolution?
Assignment on InventoryAnalysis
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What are the complications of having four supply chains?
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