1. PM Computer Services produces personal computers from component parts it buys on the open…

1. PM Computer Services produces personal computers from component parts it buys on the open market. The company can produce a maximum of 300 personal computers per month. PM wants to determine its production schedule for the first 6 months of the new year. The cost to produce a personal computer in January will be $1,200. However, PM knows the cost of component parts will decline each month so that the overall cost to produce a PC will be 5% less each month. The cost of holding a computer in inventory is $15 per unit per month. Following is the demand for the company’s computers each month:

Determine a production schedule for PM that will minimize total cost.

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