Question
In the Acushnet Canada Inc. case, explain the effect of the following changes on the objective function: a. Adding a new product to the current
In the Acushnet Canada Inc. case, explain the effect of the following changes on the objective function:
a. Adding a new product to the current products with the following parameters:
Duty Rate (%)
Monthly Storage Costs Per Carton ($)
Units Per Carton
Cartons Per Pallet
Average Value Per Unit ($)
Specialty club heads
10
0.87
65
18
70
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Max Demand in Storage
15
25
17
5
2
18
19
70
73
95
110
111
b. The duty for each product is 10% of the original amount due to a trade agreement with the producing country. Also, ACI has managed to obtain a 7% discount for on the cost of each product from the producer.
Note: cost of capital is 13% per month.
Note 2: apply the changes in each part to the original model.
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