Unidyne Corporation is currently planning the production of red dye number 56 for the next four months. Production and handling costs, as well as production and storage capacity, vary from month to month. These data are given in the table below. Production and holding costs are in $1000s per batch, and production levels and storage capacities are in batches. Holding costs are based on inventory on hand at the end of the month. The number of orders for batches the sales department has received over the four-month period is also given.





Unidyne does not wish to have any inventory of the dye at the end of May. Its current inventory is two batches. Determine a production schedule for the next four months.


Produce 3 batches in February.
Produce 1 batch in March.
Produce 3 batches in April.
Produce 2 batches in May.
Total cost is $125,000.

Business

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