Integer program to minimize the total cost incurred

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Reference no: EM131808416

Carco uses robots to manufacture cars. The following demands for cars must be met (not necessarily on time, but all demands must be met by end of quarter 4): Quarter 1 Quarter 2 Quarter 3 Quarter 4 Demand 600 800 500 400 At the beginning of the quarter, Carco has 2 robots. Robots can be purchased at the beginning of any quarter for $5,000 per robot, but a maximum of 2 per quarter can be purchased. Each robot can build as many as 200 cars per quarter. Each quarter, a robot incurs $500 in maintenance costs (even if it is not used to build any cars). Robots can also be sold at the beginning of any quarter for $3,000. At the end of each quarter, a holding cost of $200 per car is incurred. If any demand is backlogged, then a cost of $300 per car is incurred for each quarter the demand is backlogged. At the end of quarter 4, Carco must have at least 2 robots. We would like to formulate an integer program to minimize the total cost incurred in meeting the next four quarters’ demands for cars.

Reference no: EM131808416

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