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Hudson's Creators is a company that produces embroidered clothes. Forecasts of sales for the next year are 200 in th supplier for $25. The cost
Hudson's Creators is a company that produces embroidered clothes. Forecasts of sales for the next year are 200 in th supplier for $25. The cost of capital is estimated to be 28% per year (or 7% per quarter); thus, the holding cost per ite designs during the autumn, and they earn $6.50 per hour. Because of the high demand for part-time help during the L In the spring, labor is more difficult to keep, and the owner must pay $7.25 per hour to retain qualified help. Each em should be planned over the three quarters to minimize the combined production and inventory holding costs. Use the following terms to define the decision variables: PA = amount to produce in autumn PW = amount to produce in winter PS = amount to produce in spring IA = inventory held at the end of autumn IW = inventory held at the end of winter IS = inventory held at the end of spring Suppose that Hudson must rent some equipment to produce his products, which costs $75 for three months. The equipr makes no sense to incur
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