Determine optimal production schedule


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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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