Example 12.4 illustrates why a company might invest to reduce its setup cost. It all depends on how much this investment costs, as specified (in the model) by the cost of a 10% reduction in the setup cost. Use SolverTable to see how the results change as this cost of a 10% reduction varies. You can choose the range for this cost that makes the results “interesting.”

Within your range, does the lower limit on setup cost

($50) ever become a binding constraint?