Sunrise Swimwear manufactures ladies swimwear in January through June of each year that is sold through retail
Question:
Sunrise Swimwear manufactures 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 into February, $55 for carrying into March, and $55 for carrying into April).
a. Draw a network flow representation of this problem.
b. Implement a spreadsheet model for this problem.
c. What is the optimal solution?
Step by Step Answer:
Spreadsheet Modeling And Decision Analysis A Practical Introduction To Business Analytics
ISBN: 1233
8th Edition
Authors: Cliff T. Ragsdale