# A Two-Variable Product Mix Model - Using Solver Tool

#### moe10134

##### Board Regular
Hello everyone,

I need help answering this question in the Solver Tool. I'm not sure how to set up the table, define the constraints, and what formulas to use? Simple LP

During the next four months, a customer requires, respectively, 600, 800, 1,200, and 900 units of a commodity, and no backlogging is allowed (that is, the customer's requirements must be met on time). Production costs are \$80, \$100, \$105, and \$90 per unit during these months. The storage cost from one month to the next is \$20 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. Determine how to minimize the net cost incurred in meeting the demands for the next four months.

What is the optimized net cost?

Use SolverTable to see what happens to the decision variables and the total cost when the initial inventory varies from 0 to 1,000 in 100-unit increments. How much lower would the total cost be if the company started with 100 units in inventory, rather than none?

moe10134

### Excel Facts

Select a hidden cell
Somehide hide payroll data in column G? Press F5. Type G1. Enter. Look in formula bar while you arrow down through G.

#### AhoyNC

##### Well-known Member
Maybe this link will be of help.

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