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Solve using Excel Solver and set the Solving Method to Simplex LP You are to plan tequila production for the next period for the Simply

Solve using Excel Solver and set the Solving Method to Simplex LP

You are to plan tequila production for the next period for the Simply Perfect (SP) distillery, which has now been dedicated to the production of tequila for exporting to China. SP buys agaves that are already processed (by the barrel) by 4 local companies Baja, Guad J, Mexicali, and Jose. The processed agaves are differentiated by PROOF (amount of alcohol on a 1 to 200 scale) and quality (a 1 to 100 scale).

SP wishes to blend together processed agave to make three kinds of tequila for the next production period white, yellow and gold. They can ultimately sell a barrel of white tequila for $60/barrel, yellow tequila for $80/barrel and gold for $195/barrel. They can produce as much white tequila as profitable, but MUST produce NO MORE than 100 barrels of yellow tequila and 50 barrels of gold tequila (they can produce less if it is not profitable enough).

All three tequila types INDIVIDUALLY are required to be at least 79 proof (that is, the average of the agave mixed together should be at least 79 proof for each tequila considered separately). When blending the processed agaves from the source companies, the barrels of white tequila produced must average at least 80 on the quality scale, the yellow tequila average at least 87 in quality, and the gold, at least 95.

The table below identifies important information needed in your model: the maximum you can purchase from each individual farm/company, cost, quality and proof of purchasing processed agave from the four aforementioned companies based on historical records, known facts, and educated guesses.

Farm

Max Avail

Cost/Barrel

Quality

Proof

Baja

200

33

70

82

Guad J

100

45

85

77

Mexicali

150

52

90

80

Jose

75

80

100

78

To ensure that the tequila has a blended flavor, there are some composition requirements for the WHITE and YELLOW tequila (but not GOLD). For WHITE, the agave purchased from one farm cannot make up more than 40% of the total amount (in barrels) of WHITE produced. Additionally, each farm must contribute at least 10% of the total amount of WHITE produced in barrels. Similarly for YELLOW, the agave purchased from one farm cannot make up more than 50% of the total amount (in barrels) of YELLOW produced, while each farm must contribute at least 10% of the total amount of YELLOW produced in barrels. (For example, if there are 10 barrels of white tequila produced, at most 4 (40%) barrels can come from any one of the four farms, but each farm must contribute at least 1 (10%) barrel.)

Finally, no farm can provide more than 100 barrels of agave to any ONE tequila. That is each farm to each tequila type.

Find the most profitable way to mix together the agave from the 4 farms to produce the three types of tequila for the next production period. You must use whole numbers of barrels IN YOUR DECISION VARIBLES. Use an appropriate LP model approach. (FWIW Suggestion: Add integers last as you attack this problem modularly).

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