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Use a spreadsheet to create an LP model for the problem described below and solve it with Solver. The model must be linear and solved
Use a spreadsheet to create an LP model for the problem described below and solve it with Solver. The model must be linear and solved with the Simplex algorithm. Some points will be awarded for model design, technique, and efficiency.
Johns Manufacturing just received a large order for two of its main products: their customer needs units of Product and units of Product Due to limited production capacity, the company may have to purchase some finished product from a thirdparty supplier to fill the order. The table in the Excel file shows the costs to make the products and the costs to buy the products from the other supplier.
Note that the costs to make the products include both variable costs and fixed coststhe fixed cost must be paid if any amount of the product is made, but does not have to be paid if they choose to not make the product.
If the company buys any amount of either product from the thirdparty supplier, they must purchase at least units of each product.
Three types of machines are needed to make the products. The table shows the machine hours required to make a unit of each product. In the relevant time period, each machine has a limited capacity of hours.
Johns' objective is to determine the optimal amounts of each product to make andor buy to fill the order.
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