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There is a quota on the amount of raw sugar that US food and confectionery manufacturers can buy from Nicaragua. Virtually 100% of this quota
There is a quota on the amount of raw sugar that US food and confectionery manufacturers can buy from Nicaragua. Virtually 100% of this quota was used up last year. US manufacturers are requesting from the International Trade Administration (ITA) of the Department of Commerce to increase the raw sugar quota. ITA is sympathetic with this request but wants to see how much US manufacturers' profit will change with an increase of the quota. What supply chain concept or model will be most useful to US manufacturers to answer ITA's question? 1. Economic order quantity model 2. Lifting a constraint (limitation) in a business increases the profit 3. Capacitated newsvendor model 4. Globalization can decrease input prices for manufacturing
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