Question
Riosplash Sportswear is gearing up for the summer season. Its manufacturing season for bikinis is January through June, for sales to retail outlets from March
Riosplash Sportswear is gearing up for the summer season. Its manufacturing season for bikinis is January through June, for sales to retail outlets from March through August. Because of the availability of temporary workers and fabric, manufacturing costs differ from month to month. The table for problem 32 gives the average production cost, the storage costs, the monthly production capacities, and the demands during each of the months from January to August p er 1000 bikinis.
Use a transportation model to determine an optimal production/storage/sales plan for bikinis at Riosplash Sportswear.
Problem 32 Storage Cost Average Prod. (first Cost month) Jan. $8200 Feb. $8800 $125 $125 $135 $150 Mar. $8700 Apr. $8900 May $9000 $165 $170 June $8500 July Aug. Storage Cost (each additional month) $75 $75 $75 $75 $75 $75 Prod. Capacity 12 15 18 30 32 40 Demand 3 7 14 20 28 31 30 8
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