During the next four months, a customer requires, respectively, 450, 650, 1000 and 700 units of a commodity, and no backlogging is allowed (that is, the customer’s requirements must be met on time). Production costs are $50, $80, $40, and $70 per unit during these months. The storage costs from one month to the next is $22 per unit (assessed on ending inventory). It is estimated that each unit on hand at the end of month 4 can be sold for $60. Assume there is no beginning inventory. Use Solver to determine the monthly production plan that minimizes the net cost incurred in meeting the demands for the next four months.
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