Auto Froducts supplies automobile seat covers to U$.$S$.$ assembly plants.

Seat covers oan be manufactured in China or Merico. Unit cost in China is $$333$ and in Mesico, $$350.$

However, shippinq costs per $500$ units are $$10,000$ from China and only $$2,000$ from Mexico; they are expected to increase $4\%$ each month from China and $1\%$ each month from Meaico.

Each unit is sold to the sutomotive customer for $$400,$ Contracts with the Chinese vendor require that a minimum of $2,500$ units be produced each month.

Demand for the next $12$ months is estimated to be the numbers in the blue table.

The Mexican plant is new and is qearinqup production; its capacity will increase over the next year as shown in the blue table.

How should the company source production, month by month, to maximize total profit?

The form below will help you structure the problem.

Auto Products

Plant

China

Mexico

Month

Customer Demand

Minimum in China

Mezican Plant Capa

Shipping Cost China

Shipping Cost Mezico

Total Unit Cost China

Total Unit Cost Mezico

Produced in China

Produced in Mexico

Shipping Cost

Costruni per $500$ units

Sale Price

To

Pr

Sh

Pr

$Sh$

Tenar cusa

Pievenue

Profit