A manufacturer must produce a product in sufficient quantity to meet contractual sales in next four months. Production capacity & unit cost of production vary from month to month. No storage cost is incurred if units produced in a month are sold in the same month. However, if inventory is carried forward, storage cost is Rs. 1 per unit per month.
Determine optimal production schedule. Find IFS by LCM. {Rs. 2,210}
Month |
Contractual Supply |
Production Capacity |
Unit Prod. Cost |
1 |
20 |
40 |
14 |
2 |
30 |
50 |
16 |
3 |
50 |
30 |
15 |
4 |
40 |
50 |
17 |
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