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ie341project_phase3_final - I E 341 Phase I I I Phase I I I...

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IE 341 Phase III Phase III 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 LINGO 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 III 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 month
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