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 2 is A) D₂ = I₂ - I₁ + P₂. B) D₂ = I₁ + P₂. C) D₂ = I₂ + I₁ + P₂. D) D₂ = I₁ + P₂ - I₂.

Question

Quizplus · Accepted Answer

The demand constraint for quarter 2 ensures that the demand is met by the sum of the initial inventory (I1) and production in quarter 2 (P2), minus the ending inventory (I2).

A Company Is Developing a Linear Programming Model for Its