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

question 14

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.
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(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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Definitions:

Asset-backed Commercial Papers

Short-term investments secured by bundled assets, like loans or receivables, allowing companies to finance these assets.

Investors

Individuals or entities that allocate capital with the expectation of achieving a future financial return.

Securities

Assets which embody either ownership in a stock of a company available to the public, a lending relationship with a government or corporate entity through bonds, or claims to ownership via options.

Warrant Holder

An individual or entity that owns a warrant, giving them the right, but not the obligation, to buy a company's stock at a specified price before the warrant expires.