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(A) Determine How to Minimize the Total Cost of Meeting

Question 4

Essay

(A) Determine how to minimize the total cost of meeting the next 3 quarters' demand. Assume that 1000 usable units are available at the beginning of quarter 1.

(B) Referring to (A), the company wants to know how much money it would be worth to decrease the percentage of unsuitable items and/or the percentage of items that spoil. Write a short report that provides relevant information. Base your report on two uses of the SolverTable add-in: one where the percentage of unsuitable items decreases and the percentage of items that spoil stays at 10%; and one where the percentage of unsuitable items stays at 20% and the percentage of items that spoil decreases.

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