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In some ordering problems, like the one in Example 1 . 4 , whenever demand exceeds existing inventory, the excess demand is not lost but
In some ordering problems, like the one in Example whenever demand exceeds existing inventory, the excess demand is not lost but is filled by expedited ordersat a premium cost to the company. Change Sams model to reflect this behavior. Assume that the unit cost of expediting is $ well above the highest regular unit cost.
Set your new demand to units and add inputs, add calculation lines, and modify formulas as you feel is appropriate to get it to calculate the Profit with the added units being expedited and sold. There is not just one way to do this, we could each come up with a little different way, just make sure your way looks nice and the profit calculates properly. Hint: Your new profit should be over $
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