BulgurCom has a wheat warehouse with a capacity of 19,000 bushels. At the beginning of month 1, company has 12,000 bushels of wheat. Each month, wheat can be bought and sold at the price per 1000 bushels given in table below.
Month: 1 2 3 4 5 6 7 8 9 10
Selling Price ($): 6 4 7 8 4 7 5 5 3 2
Purchasing Price ($): 8 9 2 7 4 5 3 7 5 3
The sequence of events during each month is as follows:
-
You observe company’s initial stock of wheat. Cost of holding 1000 bushels at the inventory is
1$ per month.
-
You can sell any amount of wheat up to company’s initial stock at the current month’s selling
price.
-
You can buy (at the current month’s buying price) at most 22,000 bushels in a month.
Your goal is to formulate an LP that can be used to determine how to maximize the profit earned over the next 10 months.
