Jad's Food Company (JFCo) produces three types of ketchup (K1, K2, and K3) and three types of hot sauce (H1, H2, and H3) at its plant in Khasab, Musandam, for sale throughout Oman only. The company owns 800 OR of labor hours, 1000 machines hours, and 2000 Sq Ft space of the plant. The company sets its minimum expected profit to 5000 OMR. The excel file 'Jad's Food Company T2' shows all constraints coefficients and the products prices per box. The optimization problem for JFCo without risk case has been solved for you in the excel file. For risk minimization problem, you are given the prices variation over 8 years for all products. Instructions: Please report answer report' and 'sensitivity report' only. Each question is independent and has no relation with other questions which means deal with the original case to handle each question. When you resolve the model, please do this in a separate excel-sheet (name it as the question number. For example, if you need to resolve the model in question 1, name the excel-sheet Q1) in the same excel file because you can only upload one excel file to Moodle. 1. Download "Jad's Food Company T2 excel file from Moodle. Save this file as "Test2_Yourname". 2. Based on the question above, please set up the optimization problem in excel-sheet named "Original' for with risk case. 3. What do you expect to happen to the optimal mix of products with risk case by looking at the prices variation over 8 years for all products? Answer: 4. What mix of products JFCo would decide to produce to minimize risk? How this results differ from without risk case? Justify. Answer: 5. Interpret any reduced cost value you find (one value is enough)? Answer: 6. What would happen if the prices of H1 and H2 products increase by 100% at the same time? Answer: 7. What would happen to the optimal solutions (minimum risk) if labor hours increase by 40 hours? Answer: 8. What would happen to the optimal minimum risk if space in Sq. Ft decreases to 1000 Sq. Ft? Answer: 9. What would happen to the optimal minimum risk if machine hours increase by 740 hours? Answer: 10. JFCo business analytical team found that the company can still do well with reducing the minimum expected profit to 4860 OMR. What would happen to the optimal solutions (minimum risk, product mix, and constraints) in this case? Answer: 11. JFCo has again consulted Mr. John in order to improve business performance and reduce the risk. Mr. John again recommended that JFCo either has to enhance productivity of labor or buy more machine. Do you agree with Mr. John? Please justify your answer? Answer: 12. Oman Government has initiated multiple programs to support food production in Oman. JFCo was given to choose one option from the following two programs, please fully analyze each option and then recommend the best option for JFCo and why: (Hint: you should compare the total benefit with the total cost to the company in each option) A. Subsidize hiring 5 additional workers Answer: B. Subsidize buying 5 additional machine Answer: 13. JFCo has decided to account differently for the history of price variations as it believes that most recent variations in prices more impact their business and associated risk than older variations. Therefore, they assign new weights (instead of just 1) to price variations over the 8 years as follows. How could this decision affect the optimal mix of products and optimal minimum variation? Justify your answers and provide reasons for changes if any. Year 12 3456 7 8 Weight 0.50511220 30 40 Answer: Decision variable definitions: K=boxes of ketchup to produce H= boxes of hot sauce to produce Decision variables: Objective function: Gross Margin (OR/BOX) Constraints: Labor (hour) Machine (hour) Space (Sq. Ft) Price Varriations over years Y Y2 Y3 Y4 Y5 Y6 Y7 Y8 FORFATTE Y1 Y2 Y3 Y4 Y5 Y6 Y7 YB 33333333 Y4 Y6 Y7 Y8 Gross Returns (OR) Decision variables: Constraints Objective function: Gross Margin (OR/BOX) Kgs MIN DEVIATIONS Kgs 2400.0 K1 0.0 10.0 0.5 3.0 10.0 K1 K1 K1 7.2 5.0 1.0 5.0 8.0 10.0 13.0 7.0 Jad's Food Company JFCo (Without Risk) K2 0.0 5.5 1.5 2.0 5.0 K2 9.5 8.8 12.0 10.0 9.0 11.00 13.0 10.1 K2 K2 K3 0.0 3.0 1.5 1.0 3.0 K3 15.0 6.0 1.0 11.9 13.0 5.0 13.0 4.0 K3 K3 H1 145.5 7.5 1.0 3.0 7.0 H1 H1 H1 1.5 6.5 3.7 5.0 2.0 7.2 4.2 2.0 H2 327.3 4.0 2.0 1.5 3.0 H2 H2 H2 33.0 13.0 49.5 15.0 27.0 24.4 46.0 3.1 Jad's Food Company JFCo (With Risk) H3 0.0 2.0 2.5 1.0 1.5 H3 9.9 9.0 3.0 7.0 10.0 9.0 8.0 79 H3 H3 Eqn 800.0 927.3 2000.0 Type Cz Con. Lvl 800.0 1000.0 2000.0