Franklin Plate Company Manufactures Commemorative Plates for Holidays

Essay

Franklin Plate Company manufactures commemorative plates for holidays.The company is currently planning its production schedule for this year's Thanksgiving plate.Discussions with the sales manager have indicated that sales of the plate will run from August through November.The production manager has determined the manufacturing cost per plate for each of these months as well as the sales demand (in 1000s)and manufacturing capacity (in 1000s).The data are as follows:
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The maximum inventory level possible at the end of any month is 5000 plates.The storage cost per plate for each plate in inventory at the end of the month is $0.50.​
Franklin has no inventory on hand at the beginning of August and wishes to have no inventory left after November.Use dynamic programming to determine an optimal production schedule.