Formulate an lp for finding a production schedule

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Reference no: EM133428586

Question: LoCo is a new low-cost car manufacturer that makes wagons and sedans. Demand over the next three months for sedans is (starting in month 1) as follows: 1100, 1500, and 1200, respectively. Similarly, demand for wagons over the next three months is as follows: 600, 700, and 50. Each sedan costs $6000 to produce and sells for $8000, while each wagon costs $7500 to produce and sells for $9000. Monthly inventory holding costs are $150 per sedan and $200 per wagon. In any month, at most 1500 vehicles can be produced. At the beginning of month 1 there are 200 sedans and 100 wagons available in inventory. Formulate an LP for finding a production schedule that maximizes LoCo's total profit over the next three months.

Reference no: EM133428586

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