Develop a linear program to minimize the total cost

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Outdoor Inn, a camping equipment manufacturer in southern Utah, is developing a production schedule for a popular type of tent, the Double Inn. Orders have been received for 180 of these to be delivered at the end of this month, 220 to be delivered at the end of next month, and 240 to be delivered at the end of the month after that. This tent may be produced at a cost of $120, and the maximum number of tents that can be produced in a month is 230. The company may produce some extra tents in one month and keep them in storage until the next month. The cost for keeping these in inventory for one month is estimated to be $6 per tent for each tent left at the end of the month. Formulate this as an LP problem to minimize cost while meeting demand and not exceeding the monthly production capacity. Solve it using any computer software. (Hint: Define variables to represent the number of tents left over at the end of each month.)

Outdoor Inn (see Problem 7-41) expanded its tent-making operations later in the year. While still making the Double Inn tent, it is also making a larger tent, the Family Rolls, which has four rooms. The company can produce up to a combined total of 280 tents per month. The following table provides the demand that must be met and the production costs for the next three months. Note that the costs will increase in month 2. The holding cost for keeping a tent in inventory at the end of the month for use in the next month is estimated to be $6 per tent for the Double Inn and $8 per tent for the Family Rolls. Develop a linear program to minimize the total cost. Solve it using any computer software.

Month

Demand For Double Inn

Cost to Produce Double Inn

Demand For Family Rolls

Cost to Produce Family Rolls

1

185

$120

60

$150

2

205

$130

70

$160

3

225

$130

65

$160

 

Reference no: EM133148604

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