In Example 13.4, we showed why a company might invest to reduce its setup cost. It all depends on how much this investment costs, as specified (in the model) by the cost of a 10% reduction in the...

In Example 13.4, we showed why a company might invest to reduce its setup cost. It all depends on how much this investment costs, as specified (in the model) by the cost of a 10% reduction in the setup cost. Use SolverTable to see how the results change as this cost of a 10% reduction varies. You can choose the range for this cost that makes the results “interesting.” Within your range, does the lower limit on setup cost ($50) ever become a binding constraint?

Example 13.4