Mondo Motorcycles is determining its production schedule for the next 4 quarters. Demands for motorcycles are forecasted to be 400 in quarter 1; 700 in quarter 2; 500 in quarter 3; 200 in quarter 4....

Extracted text: Mondo Motorcycles is determining its production schedule for the next 4 quarters. Demands for motorcycles are forecasted to be 400 in quarter 1; 700 in quarter 2; 500 in quarter 3; 200 in quarter 4. It costs Mondo $800 to manufacture each motorcycle. At the end of each quarter, a holding cost of $100 per motorcycle left in inventory is incurred. When production is increased from one quarter to the next, a cost is incurred, primarily for training employees, at a cost of $700 per motorcycle. When production is decreased from one quarter to the next, a cost is incurred, primarily for severance pay and decreased morale, at a cost of $600 per motorcycle. All demands must be met on time, and a quarter's production can be used to meet demand for the current quarter (as well as future quarters). During the quarter immediately preceding quarter 1,500 motorcycles were produced. Assume that at the beginning of quarter 1, no motorcycles are in inventory. Formulate an IP to minimize the total costs. (a) Which OR problem is this? (b) Decision variables? (c) Objective and objective function? (d) Constraints?