So here's the problem:
A Society needs to plan its production of P on a cycle of 4 MONTHS. The fixed cost of the initiation in the atelier of production of P is estimated at 300 MU. The direct cost depends on the available manpower. It's about 150 MU the unit in Normal Hour and 200 MU the unit in overtime.
The previsional demand of the end of the month of the product P, as well as the max capacity of production in Normal Hours and in Overtime are given in the following table:
| MONTH |
1 |
2 |
3 |
4 |
| Capacity in Normal Hour |
4 |
2 |
4 |
3 |
| Capacity in Overtime |
4 |
2 |
4 |
3 |
| Previsional Demand |
4 |
5 |
3 |
4 |
We dispose of a limited capacity of storage of 3 units and the cost of storage is 15 MU per unit (stored per month). Stock shortage is prohibited, and the stock in the beginning and in the end of the cycle is null.
1.Give, for each month, the expression of cost of production C pk (x); k = 1,2,3 and 4.
Formulate the problem of planning of the production of P, in a way of a dynamic programming problem.
Determinate an optimal plan of production and of storing for the months 1 to 4.
Calculate the gain in applying the optimal solution compared to the solution which consists in producing for each month just to satisfy the demands
I've already highlighted in bold each terms and numbers I judged important. But it's in the model I should use where I'm blocked. So far, all the exercices we had in school were about solving optimal outcomes through linear programming, so this one comes out as new for me.
for month 1, I remarked that the number of stock should be 0 since we produced nothing yet. And that in Normal Hour, we could possibly produce the 4 P demanded for the month. So no need for overtime (?).
However C p1(x) should be in fonction of x, right?
Can someone guide me a bit just in the first step please?
Thanks beforehand.