A manufacturing company must determine how many units of


A manufacturing company must determine how many units of three key components to keep in a dedicated warehouse (its sole purpose is to store these three components) each week. At the warehouse, there are 360 ft2 of floor-space available to hold all three components. Component A requires two ft2 of warehouse floor-space, component B requires one ft2 of warehouse floor-space, and component C requires three ft2 warehouse floor-space. The holding cost per week of each component’s unit is $45, $60, and $75, respectively. Company policy dictates that at least 40% of all units in the warehouse be component B. The company has a total capital for holding these components of $5,000/week. At least 50, 60, and 70 units of each component must be available each week. Formulate an LP model that minimize the total cost of the total holding inventory each week, describe the decision variables, solve the model, and interpret/explain Solver’s output.

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Operation Management: A manufacturing company must determine how many units of
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