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Please show on an Excel workbook. Thank you. A renowned chocolatier Lagusta, makes three kinds of chocolate confectionery: artisanal truffles, handcrafted chocolate nuggets, and premium
Please show on an Excel workbook. Thank you.
A renowned chocolatier Lagusta, makes three kinds of chocolate confectionery: artisanal truffles, handcrafted chocolate nuggets, and premium gourmet chocolate bars. She uses the highest quality of cacao butter, dairy cream, and honey as the main ingredients. Lagusta makes her chocolates each morning, and they are usually sold out by the early afternoon. For a pound of artisanal truffles, Lagusta uses 1 cup of cacao butter, 1 cup of honey, and 1/2 cup of cream. The handcrafted nuggets are milk chocolate and take 1/2 cup of cacao, 2/3 cup of honey, and 2/3 cup of cream for each pound. Each pound of the chocolate bars uses 1 cup of cacao butter, 1/2 cup of honey, and 1/2 cup of cream. One pound of truffles, nuggets, and chocolate bars are sold to for $35, $25, and $20, respectively. A local store places a daily order of 10 pounds of chocolate nuggets, which means that Francesco needs to make at least 10 pounds of the chocolate nuggets each day. Before sunrise each morning, Lagusta receives a delivery of 50 cups of cacao butter, 50 cups of honey, and 30 cups of dairy cream. 1. Formulate the problem mathematically i.e. as an objective function and a series of constraints, expressed in terms of decision variables. 2. Implement and solve your model in Excel (using Solver). How much of each chocolate product should Lagusta make each morning? What is the maximum daily revenue that she can make? 3. For each binding constraint report the shadow price and the range of feasibility. Explain what these values mean. 4. If the local store increases the daily order to 25 pounds of chocolate nuggets, now how much of each product should Lagusta make? What is the maximum daily revenue that she can make now? A renowned chocolatier Lagusta, makes three kinds of chocolate confectionery: artisanal truffles, handcrafted chocolate nuggets, and premium gourmet chocolate bars. She uses the highest quality of cacao butter, dairy cream, and honey as the main ingredients. Lagusta makes her chocolates each morning, and they are usually sold out by the early afternoon. For a pound of artisanal truffles, Lagusta uses 1 cup of cacao butter, 1 cup of honey, and 1/2 cup of cream. The handcrafted nuggets are milk chocolate and take 1/2 cup of cacao, 2/3 cup of honey, and 2/3 cup of cream for each pound. Each pound of the chocolate bars uses 1 cup of cacao butter, 1/2 cup of honey, and 1/2 cup of cream. One pound of truffles, nuggets, and chocolate bars are sold to for $35, $25, and $20, respectively. A local store places a daily order of 10 pounds of chocolate nuggets, which means that Francesco needs to make at least 10 pounds of the chocolate nuggets each day. Before sunrise each morning, Lagusta receives a delivery of 50 cups of cacao butter, 50 cups of honey, and 30 cups of dairy cream. 1. Formulate the problem mathematically i.e. as an objective function and a series of constraints, expressed in terms of decision variables. 2. Implement and solve your model in Excel (using Solver). How much of each chocolate product should Lagusta make each morning? What is the maximum daily revenue that she can make? 3. For each binding constraint report the shadow price and the range of feasibility. Explain what these values mean. 4. If the local store increases the daily order to 25 pounds of chocolate nuggets, now how much of each product should Lagusta make? What is the maximum daily revenue that she can make nowStep by Step Solution
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