1. A written report must be submitted using MS-Word.
2. Submit MS-Excel spreadsheet analysis.
3. The title of the project.
4. A detailed analysis.
5. The word document written report identifies the MS-Excel spreadsheet that it makes references to - OR penalty for that.
4. Gepbab Production Company uses labor and raw material to produce three products. The resource requirements and sales price for the three products are as shown in the table. Currently, 60 units of raw material are available. Up to 90 hours of labor can be purchased at $1 per hour.
Product
|
Resource
|
1
|
2
|
3
|
|
Labor (hours)
|
3
|
4
|
6
|
|
Raw material(units)
|
2
|
2
|
5
|
|
Sales price ($)
|
6
|
8
|
13
|
Formulate an LP that can be used to maximize Gepbab sales revenue.
1. Provide a verbal statement of a linear programming model than can be used by the accounting department.
2. Convert the verbal statement to an algebraic model.
3. Obtain an optimal solution for the model and discuss the followings:
i) Reduced Costs
ii) Range of Optimality
iii) Shadow Prices and Ranges of Feasibility
4. Submit both the Report and the Excel spreadsheet.
i) What is the most the company should pay for another unit of raw the material?
ii) What is the most the company should pay for another hour of labor?
iii) What would product 1 have to sell for to make it desirable for the company to produce it?
iv) If 100 hours of labor could be purchased, what would the company's profit be?
v) Find the new optimal solution if product 3 sold for $15?
Submit a detail Answer and Sensitivity report. You are to provide written explanation for each of the answers.