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provide steps & solutions Question 2. (23 points) BAMA Shirt Company makes Bama shirts, and faces the following demand estimates for Bama shirts over the
provide steps & solutions
Question 2. (23 points) BAMA Shirt Company makes Bama shirts, and faces the following demand estimates for Bama shirts over the next four periods: The beginning inventory at the start of period 1 is 50 units, and the fixed setup cost (K) is $200 per order, and the inventory holding cost (h) is $5 per unit per period. You model the lot sizing problem as a shortest path problem. Assume beginning inventory is 0 . a) [11pt] Determine: i. [1pt] number of nodes: ii. [lpt] number of arcs iii. [1pt] number of decision variables: iv. [2pt] explain the meaning of arc (2,4) (in terms of the order quantity, Q2) v. [2pt] calculate the cost of arc (2,4), and clearly show your calculations vi. [2pt] explain the meaning of arc (1,4) (in terms of the order quantity, Q1) vii. [2pt] calculate the cost of arc (1,4), and clearly show your calculations b) [12 pts] Suppose the Shortest Path is to use arcs 1-3,3-4, and 4-5. For this solution, determine: i. [6pt] all order quantities (in terms of Qi values): Q1= Q2= Q3= Q4=Step by Step Solution
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