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Company ABC purchases and sells corn for cash. This company has a storage room with capacity of 5000 bushels. In January 1, the company has an initial reserve of 1000 corn bushels and a cash balance of 20000. The estimated prices per bushel of corn in the next trimester are the followings:
Purchase prices:
January -$2.85
February-$3.05
March-$ 2.90
Selling prices:
January-$3.10
February-$3.25
March-$2.95
The corn is delivered in the month that is bought and cannot be sold until the following month. The purchase and selling process are strictly COD. The company wants to obtain a final inventory of 2000 bushels at the end of the trimester. What purchase and selling policy can maximize the total net return for the three month period? You are to write a model for this problem using Linear Programming
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