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You are learning to use LP to determine the best set of Order  Quantities so that you obtain the Optimum (max) amount of profit for one  product line at EBBD

1. You are learning to use LP to determine the best set of Order  Quantities so that you obtain the Optimum (max) amount of profit for one  product line at EBBD.

As you write your report to Wilco to present your results, consider other applications for Optimization and LP.

In this TD, explore the various ways that LP can be used in Logistics  to obtain optimal results, not only at EBBD, but at any company.

2.  Consider how you would make the quarterly ordering decision without  using optimization techniques. This is called heuristic decision making –  meaning it is an approximation.

Discuss where heuristic decision making might be better than using  Optimization. What are the benefits v costs? In other words, when is it  not cost effective to spend the additional time and money to obtain the  Optimum solution?

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