Develop a model in excel to minimize the total cost


Carco uses robots to manufacture cars. The following demands for cars must be met (not necessarily on time, but all demands must be met by end of quarter 4): At the beginning of the first quarter, Carco has two robots. Robots can be purchased at the beginning of each quarter, but a maximum of two per quarter can be purchased. Each robot can build up to 200 cars per quarter. It costs $5000 to purchase a robot. Each quarter, a robot incurs $500 in maintenance costs (even if it is not being used to build any cars). Robots can also be sold at the beginning of each quarter for $3000. At the end of each quarter, a holding cost of $200 for each car in inventory is incurred. If any demand is backlogged, a cost of $300 per car is incurred for each quarter the customer must wait. At the end of quarter 4, Carco must have at least two robots. a.

Develop a model in excel to minimize the total cost incurred in meeting the next four quarters' demands for cars.

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Operation Management: Develop a model in excel to minimize the total cost
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