Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Eli Orchid has designed a new pharmaceutical product, Orchid Relief, which uses two new ingredients. Eli Orchid can procure limited amounts of each ingredient for

image text in transcribed
image text in transcribed
Eli Orchid has designed a new pharmaceutical product, Orchid Relief, which uses two new ingredients. Eli Orchid can procure limited amounts of each ingredient for each month, that is, the company has 75 tons of ingredient 1 and 60 tons of ingredient 2 available each month. Eli Orchid can manufacture the new product using any of its three existing processes. The processes are different in their cost per batch of Orchid Relief produced, use different amounts of each ingredient, and yield different amounts of Orchid Relief. Details of the three processes are summarized in the following table. Process 1 Process 2 Process 3 Cost of production per batch $14,000 $19,000 $11,000 Ingredient 1 required per batch (tons) 3 2 7 Ingredient 2 required per batch (tons) 7 2 Orchid Relief yielded per batch (tons) 2 5 Eli Orchid needs to find how many batches to produce with each process. It is interested to do this in the least costly way that produces at least 50 tons of Orchid Relief per month, given the limited availability of the two ingredients. Verbally state the objective function and all the constraints, define the decision variables and provide a mathematical formulation of the optimization problem. Create an excel spreadsheet that represents your mathematical formulation. Use Excel Solver to find the optimal solution and obtain the sensitivity report. Make sure that you provide proper labeling of objective function, decision variables, and constraints so that the Excel sensitivity report is easier to read. Then answer the following questions

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

Database Systems Design Implementation and Management

Authors: Carlos Coronel, Steven Morris

13th edition

1337627909, 978-1337627900

Students also viewed these Mathematics questions

Question

Population

Answered: 1 week ago

Question

The feeling of boredom.

Answered: 1 week ago