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Unformatted text preview: IE 341 Phase I I I Phase I I I of the project included all of the same conditions in Phase 1 except that the exchange rate has now changed from $1.00 = ¥1.00 to the new exchange rate of $1.00 = ¥2.00. The change in exchange rate affects the production costs, salary, and carbon emissions produced. The L INGO code used in Phase 1 of the project had to be modified to allow for the adjustment in exchange rate. To do this, a new variable, ex_rate , was introduced into the LINGO code (See Appendix C1 ). The ex_rate is used to multiply the production cost price by .5, which represents a decrease in the value of the Chinese RMB against the US Dollar by 50%. After running the new LINGO code with the new exchange rate change and no constraints and the output (See Appendix C2 ) was analysed, the following goals and constraints where developed for Phase I I I by each of the managers: • Maintain domestic production levels of 1300 tons and 1200 tons for Decorah and Sheldon plants respectively • Keep carbon emissions at or below 2,000,000 lbs. per month • Maintain a profit of at least $1,507,790.60 per monthMaintain a profit of at least $1,507,790....
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- Fall '10
- Exchange Rate, carbon emissions, United States dollar, Emission standard, Renminbi