A company is developing a linear programming model for its aggregate production plan. If I_t = units in inventory at the end of period t, P_t = units produced in period t, and D_t = demand in period t, then the company's demand constraint to ensure that demand is met in quarter 3 is A) D₃ = I₂ - I₃ + P₃. B) D₃ = I₃ + P₃. C) D₃ = I₃ - I₂ + P₃. D) D₃ = I₂ - I₃ + P₂.

Question

Quizplus · Accepted Answer

The demand constraint for quarter 3 should ensure that the demand D₃ is met by the sum of the production in quarter 3 (P₃) and the inventory carried over from quarter 2 (I₂), minus the ending inventory for quarter 3 (I₃).

A Company Is Developing a Linear Programming Model for Its