Fashion Apparel Direct outsources production of its line of womens wear to three major suppliers. The aggregate planning process at FAD consists of purchasing capacity at each supplier and submitting specific orders during the year to utilize the capacity. Costs and available capacity differ by supplier and time of year. Garments may be produced in advance of need, but their value decreasesby 25% each month. (Hint: consider the decrease a holding cost). Demand for September through December is 3500, 2000, 2500, and 5000 units, respectively. Use the demand and cost information given below to design and aggregate plan for FAD. Find the optimal solution using solver.
Supplier 1 Supplier 2 Supplier 3
Month Capacity/Cost Cap/Cost Cap/Cost
Sept 1000/$12 2000/$20 1500/$12
Oct 1000/$16 500/$20 2000/$12
Nov 1000/$28 500/$20 2500/$20
Dec 1000/$28 500/$20 3000/$28