met ad 680 supply chain management problem set 3

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Problem Set #3: Optimization

Create a spreadsheet that determines, for each manufacturing location, the expected profits and how many units the vendor should order from each manufacturer. Assume that demand variation is normally distributed. Vary the annual holding cost percentage and show how the expected profits and order quantities for a range of holding rates from 10% to 40%. Show these results in tabular and graphical form. Clearly organize and label the spreadsheet to show inputs and results (i.e., a user may wish to modify inputs later as more information becomes available).

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