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Unformatted text preview: IE 341 Phase I I Phase I I of the project included all the same conditions in Phase I except the addition of a tariff due to the termination of the free trade market agreement between the US and China. These tariffs affected production costs, salary, and transportation costs. The L INGO code used in Phase 1 of the project needed to be modified in order to include a tariff. To do this, a new variable, T , was introduced into the LINGO code (See Appendix B1 ). The T is used to multiply all international expenses by 1.25 to represent a 25% tariff between the US and China. After the output information from the new LINGO code had been looked over and analysed (See Appendix B2 ), the following goals and constraints where developed for Phase I I by each of the plant managers: • Maintain domestic production levels of 1400 tons and 1300 tons for Decorah and Sheldon plants • Keep carbon emissions at 1,530,000 lbs. per month • Maintain a profit of at least $600,000 per month • Maintain a production rate of 1500 tons per month at the Shanghai plant...
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This note was uploaded on 12/06/2010 for the course IE 341 taught by Professor Min during the Fall '10 term at Iowa State.
- Fall '10