Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ANSWER USING THIS FORMAT IN EXCEL THANK YOU! 3. Chemical Costs (8 POINTS) Wild Rose Chemicals Inc. has 4 production sites in the province of

image text in transcribedimage text in transcribed ANSWER USING THIS FORMAT IN EXCEL THANK YOU!

3. Chemical Costs (8 POINTS) Wild Rose Chemicals Inc. has 4 production sites in the province of Alberta. The plants in Calgary and Edmonton are the largest, with available capacity of 2,000 tonnes each. Variable production costs are $25/tonne and $20/tonne respectively. The plants in Red Deer and Lethbridge are smaller, with available capacity of only 900 tonnes each, and higher variable production costs of $36/tonne and $42/tonne respectively. WRCI has received a 3,500 tonne order from a customer called Dutch Specialties in Canmore, AB. Due to quality concerns, Dutch Specialities has requested that no more than 10% of their order be filled from the Calgary plant, otherwise there are no restrictions on sourcing. WRCI pays for the shipping costs to their customers. Freight rates from each plant to the Canmore location are as follows: Calgary - $16/tonne. Edmonton - $32/tonne. Lethbridge - $23/tonne. Red Deer - $21/tonne. (a) How many tonnes of product should be produced and shipped from each plant in order to fill the Dutch Specialities order, if WRCI wants to minimize total costs (i.e. variable production costs plus freight)? (b) What are the total costs to fulfill this order, based on the optimal sourcing plan? (c) How much could WRCI save on total costs to fill this order, if the quality issues at Calgary wer resolved and there were no quality restrictions on sourcing? vere Definitions 1 2 3 Define the function to be optimized... Define variable 1... Define variable 2... Define variable 3... Define variable 4... Define variable 5... 5 Variables 1x)? Obiective Function Coeficients Values 0.0 = Solution for function ) Sign RHS Constraints Constraint 1 Constraint 2 Constraint 3 Constraint 4 Constraint 5 Constraint 6 Constraint 7 Constraint 8 Constraint 9 Constraint 10 LHS 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 A concluding statement Legend: Solver to determine Student input/valves required Equations provided by Prof

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Decision Making And Control

Authors: Jerold Zimmerman

10th International Edition

1260565475, 9781260565478

More Books

Students also viewed these Accounting questions