Franklin Plate Company Manufactures Commemorative Plates for Holidays

question 12

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.

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Definitions:

Competitor's Technology

The technological tools, innovations, or systems used by competing businesses within the same industry.

Produce

To create or manufacture goods or services for sale.

Units

Basic quantities or measurements, such as pieces, meters, kilograms, used to specify an amount of something.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and insurance premiums, remaining constant regardless of the level of production.