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San Diego State University Operations And Supply Chain Management Assignment Help - Optimal solution


Question - Suppose that Par’s management encounters the following situations: a. The accounting department revises its estimate of the profit contribution for the deluxe bag to $18 per bag. b. A new low-cost material is available for the standard bag, and the profit contribution per standard bag can be increased to $20 per bag. (Assume that the profit contribution of the deluxe bag is the original $9 value.) c. New sewing equipment is available that would increase the sewing operation capacity to 750 hours. (Assume that 10A + 9B is the appropriate objective function.) If each of these situations is encountered separately, what are the optimal solution and the total profit contribution?

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