(Lot sizing) The demand for a product is known to be dt units inperiods t = 1,...,n. If we produce the product in period t, weincur a machine setup cost ft which does not depend on the numberof units produced plus a production cost pt per unit produced. Wemay produce any number of units in any period. Any inventorycarried over from period t to period t + 1 incurs an inventory costit per unit carried over. Initial inventory is s0. Formulate amixed integer linear program in order to meet the demand over the nperiods while minimizing overall costs.
