Suzie’s Sweatshirts is a home-based company that makes upscale, hand-painted sweatshirts for children. Forecasts of sale

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answerhappygod
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Suzie’s Sweatshirts is a home-based company that makes upscale, hand-painted sweatshirts for children. Forecasts of sale

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Suzie’s Sweatshirts is a home-based company that makes upscale,
hand-painted sweatshirts for children. Forecasts of sales for the
next year are
Autumn: 125
Winter: 350
Spring: 75
Each Shirt is sold for $15. The holding cost per shirt is 6% of
the selling price per quarter. The shirts are painted by part-time
workers who earn $4.50 per hour during the autumn. Because of the
high demand for part-time help during the winter holiday season,
labor rates are higher in the winter, and Suzie must pay the
workers $6.00 per hour. In the spring, labor is more difficult to
keep, and Suzie finds that she must pay $5.50 per hour to get
qualified help. Each shirt takes 1.5 hours to complete. Formulate
the problem to a LP model to help Suzie plan production over the
three quarters to minimize the combined production and inventory
holding cost. Suppose there is no inventory at the beginning of the
autumn. (10 points)
(Note: You do not need to solve the model.)
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