Concept explainers
a)
To determine: minimum defective items of orders for Firm H by formulating and solving linear programming.
Introduction: Linear programming is used to obtain the best possible outcome from the given real-world problem which is subjective to constraints and inequalities. It is used to make decisions based on business objectives. It is used in business planning, industrial engineering, and physical science. Express the real-world problem into the mathematical expression to get the optimal solution from the linear programming.
b)
To determine: the effect of solution if the Indian supplier was able to reduce its percentage of defective from 7 to 5
c)
To determine: the effect of solution if the firm decides to minimize its defective items by budgeting $ 7000 for purchasing
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