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A manufacturing company, called Vista, produces three products A , B , and C . The labour and material resources required to produce them are

A manufacturing company, called Vista, produces three products A, B, and C. The labour and
material resources required to produce them are shown in Table 1. For example, producing 1
kg of product A requires 2 units of labour and 1 unit of material. The company has 91.5 units
of labour and 49.5 units of material available daily. According to market demand, the company
stipulates the maximum and minimum daily production volume of each product as shown in
Table 2. E.g., for product A, the company needs to produce between 5 kg and 32 kg per day.
Product A is the companys main product, so the company emphasises that in terms of daily
production volume, product A must account for at least 80% of all products.
The company wants to maximise its profit. Profits for products B and C are $15/kg and $20/kg,
respectively. Product A is sensitive to an uncontrollable environmental factor which has two
possible states, i.e., S1 and S2. Product As profit in those two possible states is $5/kg and
$15/kg, respectively.
Table 1. Labour and material requirements
Units of resources required per kg of product
Product Labour Material
A 21
B 32
C 53
Table 2. Daily production limits
Product Maximum (kg) Minimum (kg)
A 325
B 203
C 102
By analysing historical data, you find that both states of the environmental factor are
equally likely to occur. Determine the production plan that maximises the expected
value (EV) of total daily profit, by formulating a linear programming (LP) problem and
solving it using Excel Solver. For the Excel Solver part, please paste here one
screenshot: the problem worksheet just before clicking the Solver command. That is,
after developing the Excel Solver model, press Ctrl + ~ (tilde) to show formulas in
cells, and then take a screenshot with row and column headings.
Please limit the answer to within one (1) page.

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