STUDY SET \#2 Question 1: A company produces a single type of product at a plant P. The company is planning for the next two periods. Unit production cost is $25/ unit at period 1 and $24/unit at period 2. The production capacity is 8 units per period. The company has two main retailers; retailer A and retailer B. The demand of each retailer for the next two periods is: Assume that shipment is instantaneous. Unit shipping cost from plant P is 50$/unit to RA and 40$/u unit to RB. The product may be held in inventory at P or at the retailers. Inventory holding cost per period at P is 1 \$/unit, 2 \$unit at each of the retailers. Is the flow given below flow? Why or why not? If not, find a better solution using network simplex algorithm. Also provide the cost reduction. Produce 8 units at period 1. Send 4 units to RA, 3 units to RB, and keep 1 unit in inventory at RB Produce 5 units at period 2. Send 4 units to RA and 2 units to RB