Question

Problem 2:

GECO is contracted for the next 4 years to supply aircraft engines. GECO can produce up to 20 engines per year. In each year, the unit production cost is $400,000 for the first 3 engines, and $300,000 for each additional engine. The setup cost is $200,000. In other words, the production cost is given by
C(zi)={$0if zi=0$200000+400000×ziif 1≤zi≤3$1400000+300000×(zi−3)if zi>3.

$0 C(z)$200000+400000 x 2 $1400000300000 x (z,-3) if z > 3.

The demand estimates for the next 4 years are 4, 6, 3, 5 units. We assume that the production and the shipment take place at the start of each year. GECO can elect to produce more than it needs in a certain year, in which case the engines must be properly stored until shipment date. The unit holding cost is $50,000 for every year. Currently, at the start of year 1, GECO has one engine ready for shipping. Please develop an optimal production plan for GECO.

PLEASE HELP SHOW WORK PLEASE

Answer 1

yeas units psodvced Ending innventeay 2 -12 -1G Mininhge the total cat -6,So: So unt poduced year 一4.tunit pachced yeXYュ 1 >- 12 +unit Produced yea y ぐニ -8

2 SO000 5 nkumbes哻units to be produced pex each ead 2. 5