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# Linear Programming

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Linear Programming - Analytical Methods of Supply Chain Management

Problem 2

The Tots Toys Company is trying to schedule production of two very popular toys for the
next three months: a rocking horse and a scooter. Information about both toys is given
below.

Beg. Inv.
June 1
30
10
Scooter
Plastic
Available
3500
5000
4800
Time
Available
2100
4000
2500
Monthly Demand
Horse
220
350
600
Monthly Demand
Scooter
450
700
520
Required
Plastic/Unit
5
4
Required
Time/Unit
2
3
Production
Cost/Unit
10
12
Holding
Cost/Unit/Month
1.50
1.20
Toy
Rocking
Horse
Summer Schedule
June
July
August

Develop a linear programming model that would tell the company how many of each toy
to produce during each month. You are to minimize total cost (production cost + holding
cost). Inventory holding cost will be levied on any items in ending inventory on June 30,
July 31, or August 31 after demand for the month has been satisfied. The company wants
to end the summer with 85 rocking horses and 50 scooters as beginning inventory for
Sept. 1.

Questions: How many of each toy will be produced each month? What will the total
cost equal? Be sure to specify that all variables are integer.

Define the decision variables, the objective function, and the constraints within your
answer to this question. Then, solve the model using Excel Solver. Finally, copy your