Demand for notebooks at minimum cost

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Reference no: EM13993468

SilComputer needs to meet the demand of its largest corporate and educational customers for notebook computers over the next four quarters (before its current model becomes obsolete). SilComputer currently has 5,000 notebook computers in inventory. Expected demand over the next four quarters for its notebook is 7,000; 15,000; 10,000; and 8,000. SilComputer has sufficient capacity and material to produce up to 10,000 computers in each quarter at a cost of $2000 per notebook. By using overtime, up to an additional 2,500 computers can be produced at a cost of $2200 each. Computers produced in a quarter can be used either to meet that quarter's demand, or be held in inventory for use later. Each computer in inventory is charged $100 for each quarter to reflect carrying costs. How should SilComputer meet its demand for notebooks at minimum cost? Provide a specific model, and then a generic model. Make sure you define all the variables, parameters clearly for the generic model.

Reference no: EM13993468

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