Brendamore Sports produces footballs and soccer balls and must plan on how many to produce each month for the next six months. The file Brendamore contains demand forecasts, as well as the production costs and inventory holding costs, for the next six months. Brendamore must meet the monthly demand of each product through either a combination of inventory or production during the month. Assume that demand occurs at the end of the month, so that any production during a month can meet that month’s demand.
During each month, there is enough production capacity to produce up to 32,000 total balls (football + soccer balls), and there is enough storage capacity to store up to 20,000 total balls (football + soccer balls) at the end of the month. Brendamore wants to meet these demands on time and it currently has 7,000 footballs and 5,000 soccer balls in inventory. In anticipation of demand beyond the six-month planning horizon, Brendamore would like to have 3,000 footballs and 3,000 soccer balls in inventory at the end of the sixth month. Brendamore wants to determine the six-month production schedule that minimizes the total production and holding cost.