A company must meet (on time) the following demands quarter 1|30units; quarter 2|20 units; quarter 3|40 units. Each quarter, up to27 units can be produced with regular-time labor, at a cost of $40per unit. During each quarter, an unlimited number of units can beproduced with overtime labor, at a cost of $60 per unit. Of allunits produced, 25% are unsuitable and cannot be used to meetdemand. Also, at the end of each quarter, 10% of all units on handspoil and cannot be used to meet any future demands. After eachquarter's demand is satisfied and spoilage is accounted for, a costof $15 per unit is assessed against the quarter's ending inventory.Formulate an LP that can be used to minimize the total cost ofmeeting the next three quarters' demands. Assume that 20 usableunits are available at the beginning of quarter 1. (Hint: Defineinventory variables to keep track of the number of usableunits.)
