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The neighborhood bakery needs to determine how to operate its ovens to produce Easter bread. For each oven, there is a start-up cost associated
The neighborhood bakery needs to determine how to operate its ovens to produce Easter bread. For each oven, there is a start-up cost associated with preparing the oven and cleaning it afterward. Additionally, there is a cost per Passover bread produced, which differs depending on the oven. There are two baking periods in one day, and the demand for Easter buns for the first period is 700, while for the second it is 450. The flexibility for the operation is high, which means that it is possible to use a oven only for one period, moreover, an oven used in the first period can be used in the second period without incurring an additional start-up cost. Below are the characteristics of the ovens: OVEN Start-up cost (USD$) 1 N 3 250 300 450 Cost of producing one unit (USD$) 0,11 0,04 0,08 Maximum capacity per period (units) 370 350 300 a) Formulate an Integer Linear Programming model that will help the bakery determine how to operate its ovens. Be sure to clearly define the decision variables, the objective function, and the constraints. b) Implement and solve the model using Solver. Interpret your results, for example, furnace operation, quantity produced per period, etc. c) Carry out the sensitivity analysis for any of the parameters that you consider important and comment on your results.
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