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Make a Influence chart like the one linked for this problem: Thanks The EEC production facility purchases wood waste materials from timber harvesting operations as
Make a Influence chart like the one linked for this problem: Thanks The EEC production facility purchases wood waste materials from timber harvesting
operations as well as pulp and paper mills across Lower Alabama LA and uses these
biomass materials to produce cellulosic ethanol. EEC can process up to tons of
biomass feedstock per month during the regular production schedule and can outsource
any additional production as needed. The current process technology yields gallons of
ethanol per ton of feedstock. The production process uses specific enzymes to breakdown
the biomass feedstock into different sugars before it enters the fermentation and
distillation processes. The production process requires pounds of enzymes per ton of
biomass feedstock, and these enzymes cost $ per hundred pounds. EEC has a contract
with a local paper mill to purchase tons of biomass feedstock per month at a price of
$ per ton. Any additional biomass feedstock that EEC requires is purchased on the spot
market at a current price of $ per ton. However, this spot market price fluctuates from
month to month between $ and $ per ton. The monthly fixed cost of operating the
plant is $ with a variable processing cost of $ per ton for regular production and
an outsourced processing cost of $ per ton. The current market price of cellulosic
ethanol is $ per gallon, and at this price Eddie can sell gallons of ethanol each
month. Based on historical market data every one cent reduction in price increases this
demand by gallons. Conversely, every one cent increase in price reduces the
demand by gallons. For the next month, Eddie is planning to sell his cellulosic
ethanol for $ per gallon.
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