Sunrise Swimwear manufacturers ladies swimwear in January through June of each year that is sold through retail outlets in March through August. The following table summarizes the monthly production capacity and retail demand (in 1,000s), and production and inventory carrying costs (per 1,000).

For instance, 1,000 units of swimwear made in January to meet demand in April would cost $7,100 in production cost plus $220 in carrying costs during February, March, and April ($110 for carrying cost in February, $55 for carrying into march, and $55 for carrying into April).

Questions:

1. Draw a network flow representation of this problem. You should specify how the nodes and arcs are constructed.
2. Formulate a Linear Programming model for this problem.
3. Solve the problem using Solver. Briefly explain your solution.

Capacity Demand 16 18 Production Cost Per 1,000 $7,100 $7,700 $7,600 $7,800 $7,900 $7,400 Month January February March April May June July August Carrying Cost per 1,000 First Month Other Months $110 $55 $110 $55 $120 $135 $55 $150 $55 $155 $55 $55 20 28 29 36 14 20 26 33 28 10 Capacity Demand 16 18 Production Cost Per 1,000 $7,100 $7,700 $7,600 $7,800 $7,900 $7,400 Month January February March April May June July August Carrying Cost per 1,000 First Month Other Months $110 $55 $110 $55 $120 $135 $55 $150 $55 $155 $55 $55 20 28 29 36 14 20 26 33 28 10