Demand for product in month 1 is 220,month 2 is 340, month 3 is 260.
The company can produce 250 in a month at $100 each. The company can purchase 250 cases over the entire 3 month period at a cost of $150 each. Or demand can be filled from on hand inventory. The carrying cost is $20 per product per month. Inventory on hand at beginning of month 1 is 25. Develop an algebraic formulation of the production planning problem.