Question

A manufacturer provides specialized microchips. During the next 3 months, its sales, costs, and available time are There are no chips in stock at the beginning of the first month.

It takes 1.5 hr of production toproduce a chip. The cost to store a chip starts from the beginning of one month to the next (i.e., if a chip is produced in month 1, regardless the date of the month, storage fee will be charged from beginning of month 1). Determine a production schedule and the total cost that meets the demand requirements, does not exceed the monthly production time limitations, and minimizes cost. Note that no chips should be in stock at the end of the 3 months.

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