Suppose Decorum makes $450$ ceiling fans in January and $500$ in

February. Calculate by hand the following costs. $($Note that holding

costs are charge for the fans left in inventory at the end of the

month. For instance, if Decorum has $25$ fans at the beginning of a

month, it makes $450$ fans in that month, and it sells $400$ fans in that

same month, then there are $75$ fans left at the end of the month, for

which it needs to charge $$20$ per fan for holding cost. The $75$ fans

become the beginning inventory for the next month.$)$

January

Regular production cost:

Holding cost:

February

Regular production cost:

Holding cost:

Question $11$

Assuming Decorum must produce enough ceiling fans to meet

demand, how many ceiling fans should Decorum produce each

month over the course of the next year $($i$.$e$.,$ January to December$)$ to

optimize its objective?

Make a rough sketch of a spreadsheet model, with blocks laid out

for the data cells, changing cells, output cells, and objective cell.

Build a spreadsheet model for January and February and thoroughly

test the model. Build and solve a linear programming spreadsheet

model for the full problem $($i$.$e$.,$ January to December$).$

What is the value of the objective function for the optimal solution?