Question: Please solve this optimization question using excel solver and show all work withing the clees. You have a small shop that manufactures bicycles. Based on
Please solve this optimization question using excel solver and show all work withing the clees. You have a small shop that manufactures bicycles. Based on the data you have collected across the years, you have precise data for your demand for every month of the coming year. You must meet this demand every month, but you are allowed to overproduce and store bicycles from monthtomonth. Your forecasted demand is as follows: Jan Feb Mar Apr May Jun Aug sept oct nov Dec The variable costs of running this business are storage and churn. You can store inventory from one month to the next at a cost of $bike You can add production from monthtomonth at a cost of $bike and you can decrease production from monthtomonth at a cost of $bike
Your production in the December prior to this year was bicycles, and you sold all your inventory by the end of that month.
You must finish the calendar year with zero inventory for tax purposes
What monthly production schedule will allow you to meet all of your demand, but will minimize the cost of doing business churn and storage What is thattotalcost
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