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Tricolore is an apparel retailer in east Austin, TX that sells mostly t-shirts and jeans. Tricolore's most popular item is a cotton t-shirt that comes
Tricolore is an apparel retailer in east Austin, TX that sells mostly t-shirts and jeans. Tricolore's most popular item is a cotton t-shirt that comes in three colors: green, white, and red. Tricolore steadily sells about 240 t-shirts of each color per month. Currently, they order the shirts in quantities that cause them to have (on average) a 1 week supply of inventory of each color in stock (i.e., 60 t-shirts). Tricolore buys each of the three t-shirts from a different supplier. All three suppliers charge Tricolore $40 per t-shirt ordered, but they differ in their shipment feeswhich Tricolore has to pay regardless of the size of the order. The green-t-shirt supplier charges a $200 delivery fee, the white-t-shirt supplier charges a $300 delivery fee, and the red-t-shirt supplier charges a $400 delivery fee. Tricolore's cost of holding inventory is high: $10 per t-shirt per month. The goal of the problem is to help Tricolore with its inventory management
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