1. Following the example in the recording, build your own Excel model which essentially improves the basic Ch. 13 models by adding an element of "optimization" (Linear Programming based on Excel Solver).

3. Reply to the following question in-line:

a) The base data results in a total cost of $104,379 using a combination of inventory, subcontracting and regular time. Assume that: - only 100 units of subcontracting are available per month. - overtime is limited to 100 units per month - regular time capacity is 900 per month. Re-solve and make sure that there is still a feasible solution. What is the total cost now?

b) in addition to the assumptions in a) what is the total cost if a lower-cost source is located and Subcontracting cost goes from $20 per unit to $15?