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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
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 ProfStep by Step Solution
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