Function of beginning inventory

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Models of inventory systems frequently consider the relationships among a beginning inventory, a production quantity, a demand or sales, and an ending inventory. For a given production period j, let

sj-1 = beginning inventory for period j (ending inventory from period j - 1, the previous period)

xj = production quantity in period j

dj = demand in period j

sj = ending inventory for period j

a. Write the mathematical relationship or model that shows ending inventory as a function of beginning inventory, production, and demand.

b. What constraint should be added if production capacity for period j is given by Cj?

c. What constraint should be added if inventory requirements for period j mandate an ending inventory of at least Ij?

Reference no: EM133162743

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