(adsbygoogle = window.adsbygoogle || []).push({}); My assignment is to formulate a LP and find the optimal solution for the following problem:

Acme estimates it costs $1.50 per month for each unit of this appliance carried in inventory (estimated by averaging the beginning and ending inventory levels each month). Currently, Acme has 120 units in inventory on hand for the product. To maintain a level workforce, the company wants to produce at least 400 units per month. They also want to maintain a safety stock of at least 50 units per month. Acme wants to determine how many of each appliance to manufacture during each of the next four months to meet the expected demand at the lowest possible total cost.

Month 1 2 3 4

Demand 420 580 310 540

Production Cost $49.00 $45.00 $46.00 $47.00

Production Capacity 500 520 450 550

I understand everything except the first sentence. Can someone please explain the meaning of the first sentence.

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# Homework Help: Linear Programming

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