Refer to the sheet labeled Question 7 in the Excel file. Use a spreadsheet to create LP model for the following problem and solve it with Solver. While it's recommended you jot down key elements of the model, you are not required to show the algebraic formulation of the problem. Note that a few points will be awarded for model design and spreadsheet technique.

Hyperion ???????????????????????? 450 ??? 1??? 250 ??? 2 ??? 200 ??? 3????????????????? Hyperion ???????????????????????????????? 50 ??????

The company has limited production capacity but can obtain identical products from a third-party supplier if it makes sense to do so. The third-party supplier is neither a partner nor a direct competitor so there are no strategic implications involved in the decision to buy from them. The Excel file shows the prices the customer is willing to pay for the products, the unit costs to make the products, and the prices to buy the products from the other supplier.

Three types of machines are needed to make the products. The Excel file shows the machine hours required to make a unit of each product and the number of hours available on each machine in the relevant time period.

Hyperion's objective is to determine the production and purchasing plan that maximizes profit from this order.

1 Question 7 2 3 Product 1 Product 2 Product 3 Selling Price $62 $80 $100 5 Unit Cost to Make $40 $60 $95 6 Price to Purchase from 3"-Party Supplier $55 $75 $110 7 8 Machine Hours Required per Unit Machine Time 9 Product 1 Product 2 Product 3 Available 10 Machine 1 2.5 1.5 2.0 200 11 Machine 2 3.0 2.0 2.0 150 12 Machine 3 2.0 3.5 1.5 220 13 14 15 16 17