Q5.
Demands for parts in weeks 1, 2, 3 are 200, 300, 500 units respectively while available capacities for production in the three weeks are for: 350, 350, 350 units respectively. Inventory holding cost is Rs.h per week.
(i) To minimize total Inventory holding cost while meeting demands on time, determine the production quantities in weeks 1, 2, 3.
(ii) If the optimization problem above is formulated as a Linear Program, determine the Shadow Price of the capacity constraint in the Third week. [GATE 1999]