D2 June 2016 Q7

EdexcelOld spec15 marksDynamic Programming

7. Remy builds canoes.

He can build up to five canoes each month, but if he wishes to build more than three canoes in any one month he has to hire an additional worker at a cost of £400 for that month.

In any month when canoes are built, the overhead costs are £150

A maximum of three canoes can be held in stock in any one month, at a cost of £25 per canoe per month.

Canoes must be delivered at the end of the month.

The order book for canoes is

MonthJanuaryFebruaryMarchAprilMay
Number ordered22564

There is no stock at the beginning of January and Remy plans to have no stock after the May delivery.

(a) Use dynamic programming to determine the production schedule that minimises the costs given above. Show your working in the table provided in the answer book and state the minimum cost. (13)

The cost of materials is £200 per canoe and the cost of Remy’s time is £450 per month. Remy sells the canoes for £700 each.

(b) Determine Remy’s total profit for the five-month period. (2)