During the next four months a customer requires

Reference no: EM13394398

During the next four months, a customer requires, respectively, 500, 650, 1000, and 700 units of a commodity, and no backlogging is allowed Production costs are $50, $80, $40, and $70 per unit during these months.The storage cost from one month to the next is $20 per unit. It is estimated that each unit on hand at the end of month 4 can be sold for $60. Assume there is no beginning inventory.

a. Determine how to minimize the net cost incurred I meeting the demands for the next four months.
b. Use SolverTable to see what happens to the decision variables and the total cost when the initial inventory varies from 0 to 1000 in 100-unit increments. How much lower would the total cost be if the company started with 100 units in inventory, rather than none. Would this same cost decrease occur for every 100-unit increase in initial inventory.

Reference no: EM13394398

Questions Cloud

Discuss how presentations that are well planned organized : discuss how presentations that are well planned organized and effectively delivered can help a company win customers.

Describe and evaluate coca-colarsquos marketing and : read cases 1-3 and 6-6 on coca-cola. assume the role of a management consultant reporting to the ceo and board of

American food services inc acquired a packaging machine : american food services inc. acquired a packaging machine from barton and barton corporation. barton and barton

What would be the net amount of the liability myriad would : myriad solutions inc. issued 10 bonds dated january 1 with a face amount of 320 million on january 1 2013 for

During the next four months a customer requires : during the next four months a customer requires respectively 500 650 1000 and 700 units of a commodity and no

Find the break even point ohio company manufactures a : find the break even point ohio company manufactures a single product that sells for 168 per unit and whose total

Compute 1 uncollectible accounts expense and 2 the ending : the general ledger account for accounts receivable shows a debit balance of 40000. the allowance for uncollectible

Prepare the appropriate journal entries to record salaries : lee financial services pays employees monthly. payroll information is listed below for january 2013 the first month of

As a member of the finance department of ranch : as a member of the finance department of ranch manufacturing your supervisor has asked you to compute the appropriate

User Account

All Pages