Question
In the Alpha Beta Charlie. case, explain the effect of the following changes on the objective function: a. Adding a new product to the current
In the Alpha Beta Charlie. 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, ABC 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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