Inventory management

I’m stuck with proposing an LP model for this problem can u please walk me through developing the model “formulas for this”
A Retailer is facing the following yearly deterministic (demand are known in advance) demand for a given product sold a price of p=30 $/unit. 

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

Month       1     2   3      4     5   6     7   8      9  10      11 12   
Demand   120 65  220 10   0  150  60 100  0   200   50   20 

  
The retailer is making the replenishment from a local supplier who sells the items at a per-unit cost of c=20$. Moreover, whenever the retailer makes an order from the supplier, he should pay a fixed transportation cost of 100 $ ( regardless of the quantity carried). 
❑In addition to the purchasing cost and transportation cost, the store is also carrying a holding cost of h=0.20$/ unit/ month. 
Assume the following 
❑The amount of items held for one month is simplified as to leftover at the end of the month Max (Available Quantity at the beginning of the month -Demand), 0) 
❑Assume that there is no Lead Time, if you order at any day you get your items same day
❑Retailer cannot make more than one order per month
❑Retailer must satisfy all the demand 
the retailer wants to find the best replenishment strategy (When and How Much To order) to meet all demands at the minimum cost /highest profit. 
To understand the cost dynamics consider the following example: 

If the retailer orders 200 units at month 1. The associated costs are as follows: Transportation Cost (100)+ Purchasing Cost (200*20=4000) +
Holding Cost ( Leftover=(200-120)*0.2=80*0.2=16)=4016$
If the retailer orders 100 units at month 1. The associated costs are as follows: Transportation Cost (100)+ Purchasing Cost (100*20=2000) + Holding Cost ( Leftover=(0)*0.2=0)=2100$ 

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper
Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our Guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Online Class Help Services Available from $100 to $150 Weekly We Handle Everything