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Linear programming

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Acme estimates it costs $1.50 per month for each unit of this appliance carried in inventory (estimated by averaging the beginning and ending inventory levels each month). Currently, Acme has 120 units in inventory on hand for the product. To maintain a level workforce, the company wants to produce at least 400 units per month. They also want to maintain a safety stock of at least 50 units per month. Acme wants to determine how many of each appliance to manufacture during each of the next four months to meet the expected demand at the lowest possible total cost... see attachment for remainder of problem.

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This shows how to complete a linear programming problem, including an excel solver spreadsheet model.

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