Question: Volume discount Suppose that the variable cost for using Machine 6 drops to $ 2 0 per brake shoe if the company produces more than
Volume discount
Suppose that the variable cost for using Machine drops to $ per brake shoe if the company produces more than total brake shoes on that machine. In either case whether they produce at most or more than all brake shoes produced on Machine will incur the same variable cost.
a Formulate an IP model for this new problem ie provide the mathematical model formulation
b Create a spreadsheet model for this new problem on a new worksheet in the same workbook, and solve it using Solver
c What is the optimal solution now?
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