Meet the demand over the next four quarters

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A company needs to meet the demand over the next four quarters, and has currently 5000 parts in inventory. The expected demand over the next four quarters is 7000, 15000, 10000, and 8000. The company has enough capacity to produce 10000 parts per quarter at a cost of $2000 per part. Using over time the company can make up to and additional 2500 parts at a cost of $2200 each. The ending inventory in the fourth quarter is assumed to be zero. the part in inventory are charged $100 for caring costs. Find minimum cost. How many part should be produced in each quarter at regular time and how many parts to produce in overtime, and how much inventory to carry in each quarter.

Formulate a linear program model that can be used in lingo.

Find optimal solution, like MAX Z=

Reference no: EM132300658

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