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Demand

Demand. Based on problem 4.15 from Glover, Klingman, and Phillips. Assumptions (Version 1). Product will be discontinued after June. So, no there is no need to hold inventory after June. Production cost $10/unit Inventory holding cost = $0.5/unit per month

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Demand

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  1. Demand Based on problem 4.15 from Glover, Klingman, and Phillips

  2. Assumptions (Version 1) • Product will be discontinued after June. So, no there is no need to hold inventory after June. • Production cost $10/unit • Inventory holding cost = $0.5/unit per month • At most 200 units can be produced each month • No back ordering

  3. 0.5 0.5 0.5 0.5 0.5 jan feb mar apr may jun -100 -150 -200 -100 -200 -150 MCNFP Formulation 900 s (c=10,u=200)

  4. Assumptions (Version 2) • Product will be discontinued after June. So, no there is no need to hold inventory after June. • Production cost $10/unit in regular time and $12/unit in overtime • Inventory holding cost = $0.05/unit per month

  5. Assumptions (Version 2) • At most 100 units can be produced each month in regular time • 75 units/month can be produced in overtime. • No back ordering

  6. 0.5 0.5 0.5 0.5 0.5 jan feb mar apr may jun -100 -150 -200 -100 -200 -150 MCNFP Formulation 900 s (c=10,u=100) OT (c=12,u=75)

  7. jan feb mar apr may jun -100 -150 -200 -100 -200 -150 Solution 300 s 100 100 100 100 100 100 25 25 75 75 25 50 75 OT

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