Problem $7\mathrm{.}3$

No additional set up file detail is provided other than the infor from the Excel file provided to you in the MHConnect download.

The goal for you here is to learn to develop your own framework and spreadsheet model from scratch.

Use the techniques from Chapter $7$ to guide you in completing the full development of this model.

Hint: You will need to calculate an Ending Inventory each quarter and use a second constraint to make sure that your ending inventory is available.

Reboot Incorporated is a manufacturer of hiking boots. Demand for boots is highly seasonal. In particular, the demand in the next year is expected to be $3,000,4,000,8,000,$

and $7,000$ pairs of boots in quarters $1,2,3,$ and $4,$ respectively. With its current production facility, the company can produce at most $6,400$ pairs of boots in any quarter.

Reboot would like to meet all the expected demand, so it will need to carry inventory to meet demand in the later quarters. Each pair of boots sold generates a profit of $$20$ per

pair. Each pair of boots in inventory at the end of a quarter incurs $$8$ in storage and capital recovery costs. Reboot has $1,000$ pairs of boots in inventory at the start of quarter $1.$

Reboot's top management has given you the assignment of doing some spreadsheet modeling to analyze what the production schedule should be for the next four quarters and

making a recommendation. Click here for the Excel Data File Build a spreadsheet model and then solve it$.$ What should be the production schedule for the next four quarters?

Determine the net profit. $---$ It appears the correct answer is $$400,000$ for the net profit. But I can't seem to get it using solver. What am I doing wrong? $***$