So here is the problem:
A small machine tool manufacturing company entered into a contract to supply $80$ drilling machines at the end of the first month, $120$ at the end of the second month and $150$ at the end of the third month. The unit cost of manufacturing a drilling machine in any month is given by $50x + 0.2x^2$, where $x$ is the number of drilling machines manufactured that month. If the company manufactures more units than needed the first month, there is an inventory carrying cost of $8$ per unit for each unit carried into the next month. Assume that the company has enough resources to produce up to $200$ drilling machines per month and there is no initial inventory. Formulate a two-variable nonlinear program to find the number of drilling machines to be manufactured in each month to minimize the total cost.
This is confusing to me. I can only identify one variable that is already been told in the question which is the drilling machines manufactured, $x$. I could say that I have $x_1$ for the machines manufactured in month $1$ and $x_2$ for the machines manufactured in month $2$ but then I would need $x_3$ for month $3$ and the problem only states to formulate a two-variable program. Also to minimize the total cost the extra machines manufactured might aswell be $0$.
Any idea how to solve this? This shouldn't be something complicated, but I seem to be missing something.