An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin

Exercise 22

EZ-Windows, Inc., manufactures replacement window for the home remodeling business. In January, the company produced 15.000 window' management team would like to develop a produced schedule for the next three months. A smooth production schedule is obviously desirable because it maintains the current workforce and provides a similar month-to-month operation. However, give the sales forecasts, the production capacities, and the storage capacities as shown, the management team does not think a smooth production schedule with the same production quantity each month possible.
The company's cost accounting department estimates that increasing production by one window from one month to the next will increase total costs by $1.00 for each unit increase in the production level. In addition, decreasing production by one unit from one month to the next will increase total costs by $0.65 for each unit decrease in the production level. Ignoring production and inventory carrying cost, formulate and solve a linear programming model that will minimize the cost of changing production levels while still satisfying the monthly sales forecasts.