You own a wheat warehouse with a capacity of 20,000 bushels. At the beginning of month 1, you have 6,000 bushels of wheat. Each month, wheat can be bought and sold at the price per 1000 bushels given in Table 46.
The sequence of events during each month is as follows:
a You observe your initial stock of wheat.
b You can sell any amount of wheat up to your initial stock at the current month’s selling price.
c You can buy (at the current month’s buying price) as much wheat as you want, subject to the warehouse size limitation.
Your goal is to formulate an LP that can be used to determine how to maximize the profit earned over the next 10 months.
Table 46
|
Month |
Selling Price ($) |
Purchase Price ($) |
|
1 |
3 |
8 |
|
2 |
6 |
8 |
|
3 |
7 |
2 |
|
4 |
1 |
3 |
|
5 |
4 |
4 |
|
6 |
5 |
3 |
|
7 |
5 |
3 |
|
8 |
1 |
2 |
|
9 |
3 |
5 |
|
10 |
2 |
5 |
