Determine an optimal production schedule for the month

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Reference no: EM13318653

An electronics firm has a contract to deliver the following number of ratios during the next three months; month 1, 200 radios; month 2; 300 radios; month 3, 300 radios. For each radio produced during months 1 and 2, a $10 variable cost is incurred; for each radio produced during month 3, a $12 variable cost is incurred. The inventory cost is $1.5 for each radio in stock at the end of a month. The cost of setting up for production during a month is $250. Radios made during a month may be used to meet demand for that month or any future month. Assume that production during each month must be a multiple of 100. Given that the initial inventory level is 0 units, use dynamic programming to determine an optimal production schedule.

Reference no: EM13318653

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