QUESTION 4 (25 points) Mr. Fairtrade is a capitalist in Sweden who would like to expand his operations in the developing world. He has factories in 3 locations - Vietnam, Kenya, and Bolivia - that ship his product to Sweden, the only market where he is permitted to sell his product. He currently has 1 brand new machine in each factory with throughput and WIP Work In Process Inventory) as given in the table below. Throughput WIP Machine Cost per Production Transport (units per (units) Availability machine Cost per Cost per unit hour) (hours/year) ($) unit to Sweden ($) ($) Vietnam 60 1500 4800 Cv Pv TY Kenya 15 100 PK (and CK 1600 Cv Bolivia 30 150 1600 Pa (and CB Cy) Each factory can hold up to 5 machines but they have to be identical to the one already there. The machines will last for exactly one year. Mr. Fairtrade estimates that the demand for his product in Sweden is 1.0 million units per year. By law he is required to sell his product at $ 10 per unit. a) What sort of analysis method /model/tool/ principle would you use to help Mr. Fairtrade make his decision on how many new machines to buy for each location? Why? b) Formulate the model that you would use. (Do not attempt to solve!) Note: Ignore pipeline inventory cost and other costs such as taxes, tariffs etc. from all factories to Sweden in your model. QUESTION 4 (25 points) Mr. Fairtrade is a capitalist in Sweden who would like to expand his operations in the developing world. He has factories in 3 locations - Vietnam, Kenya, and Bolivia - that ship his product to Sweden, the only market where he is permitted to sell his product. He currently has 1 brand new machine in each factory with throughput and WIP Work In Process Inventory) as given in the table below. Throughput WIP Machine Cost per Production Transport (units per (units) Availability machine Cost per Cost per unit hour) (hours/year) ($) unit to Sweden ($) ($) Vietnam 60 1500 4800 Cv Pv TY Kenya 15 100 PK (and CK 1600 Cv Bolivia 30 150 1600 Pa (and CB Cy) Each factory can hold up to 5 machines but they have to be identical to the one already there. The machines will last for exactly one year. Mr. Fairtrade estimates that the demand for his product in Sweden is 1.0 million units per year. By law he is required to sell his product at $ 10 per unit. a) What sort of analysis method /model/tool/ principle would you use to help Mr. Fairtrade make his decision on how many new machines to buy for each location? Why? b) Formulate the model that you would use. (Do not attempt to solve!) Note: Ignore pipeline inventory cost and other costs such as taxes, tariffs etc. from all factories to Sweden in your model