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A company produces two products, A and B, over the months of June, July and August. The total production capacity (expressed in hours) varies monthly. The basic data of the situation is as follows: Demand A (units) 500 June, 5000 July, and 750 August Demand B (units) 1000 June, 1200 July, and 1200 August Capacity (hours) 3000 June, 3500 July, and 3000 August The production rates (in units per hour) are .75 and 1 for products A and B, respectively. All demand must be met. However, demand or a later month may be filled from the production in an earlier one. For any carryover from one month to the next, holding costs of $0.90 and $0.75 per unit per month are charged for products A and B, respectively. The unit production costs for the two products are $30 and $28 for A and B, respectively. Optimize the production costs to meet demand.
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