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Patricia runs a clothing store in Maine that is open every year from April through October. Today is January 1 and Patricia has no inventory.
Patricia runs a clothing store in Maine that is open every year from April through October. Today is January and Patricia has no inventory. She both produces and sells her own pieces. She is currently planning her production for the upcoming season until October Each piece retails for $ and costs $ to make. She can produce up to pieces per month in the winter months January through March but only pieces per month after the store opens in April. She can store at most pieces at any time and her holding cost is $ per month. Her demand during the early season April to June is of pieces a month, during the peak season July and August is of pieces a month and during the late season September and October is of pieces a month. Assume for simplicity that all demand occurs on the last day of the month. Formulate Patricias linear optimization problem to help her figure out how many units she should produce on each month.
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