​Unidyde Corporation Is Currently Planning the Production of Red Dye

question 19

Essay

​Unidyde 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. This data is given in the table below.
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Production and holding costs are in ($1,000's 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 are also given.
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Unidyne does not wish to have any inventory of the dye at the end of May. Its current inventory is 2 batches. Determine a production schedule for the next four months.
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Definitions:

Molar

A tooth adapted for grinding, located in the posterior part of the mouth in both the upper and lower jawbones.

Muscularis

A layer of muscle found in various parts of the digestive system, responsible for segmental contractions and peristaltic movement.

Submucosal

Lying beneath the mucous membrane, often referring to a layer of tissue in various organs.

Mucosal

Pertaining to or resembling mucous membranes lining various body cavities and producing mucus.