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(50 Points) Paula Lopez makes and sells custom outfits for theme parties hosted by her wealthy clients. She uses three tailoring shops located in the
(50 Points) Paula Lopez makes and sells custom outfits for theme parties hosted by her wealthy clients. She uses three tailoring shops located in the Northeastern United States (in Albany, Boston, and Hartford) to make the outfits. These are then shipped to her finishing facilities in Charlotte and Richmond, where they are further customized to suit the clients' specifications and inspected before being shipped to the clients. Paula's clients are based primarily in four cities: Dallas, Louisville, Memphis, and Nashville. Paula has received the following firm orders for custom outfits: 450 from Dallas, 300 from Louisville, 275 from Memphis, and 400 from Nashville. Her tailoring shop in Albany can make up to 450 outfits, the Boston shop can handle up to 500 outfits, and the Hartford shop has the capacity to make 580 outfits. Therefore, Paula's total tailoring capacity exceeds the total demand for outfits. She therefore knows that she will be able to fully satisfy all her clients' needs. There is no production cost difference between the three tailoring shops, and Paula sells all her outfits at the same fixed price to her clients. There is also no cost difference between Charlotte and Richmond with regards to customization and inspection processes at these locations. Further, since these processes do not consume too much time or space, Paula need not be concerned about both of these locations with regard to capacity. Paula's cost difference between various locations arises primarily from the shipping costs per outfit, which are summarized in the following tables. Draw the problem as a network to visualize the various flows that could occur. (10 Points) Formulate the LP problem. (15 Points) Hint: There are 32+24=14 decision variables. Solve the problem in Excel. (25 points)
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