I came across some questions of this style and was not sure what the minimization function would be.
A hotel requires a known number of hand towels for guests to be given during the week and the goal is to meet the demand at minimum cost. Suppose the towels required are 100,80,120,150 and 130 for Monday through Friday respectively. New towels can be purchased for \$0.12 each and used towels can be washed. Towels that are washed for the next-day service have a cost of \$0.06 each, for use on the second day at \$0.03 each and for the third day at \$0.03 each. At the end of the week, all used towels can be sold for \$0.01 each.
I assumed the following: $$x_i = \text{the # of new towels purchased for day } i, \text{where } i = 1,2,3,4,5$$ $$x_{ij} = \text{the # of towels used on day } i, \text{and washed to be used again on day } j, = i+1,...,5$$
My constraints are:
$$x_{ij} \geq 0$$ $$x_1 \geq 100$$ $$x_2 + x_{12} \geq 80$$ $$x_3 + x_{13} + x_{23} \geq 120$$ $$x_4 + x_{14} + x_{24} + x_{34} \geq 150$$ $$x_5 + x_{15} + x_{25} + x_{35} + x_{45} \geq 130$$
I am not sure how to develop the cost function fully. I reached this far but not sure what to do with the selling of the towels:
$cost = 0.12 (x_1 + x_2 + x_3 + x_4 + x_5) + 0.06 (x_{12}+ x_{23}+ x_{34}+ x_{45}) + 0.04 (x_{13} + x_{24} + x_{35}) + 0.03 (x_{14} + x_{25})$