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You have been hired as a consultant to advise Sandbaggers, Inc., a company that purchases silica sand, cleans it, and then sells the silicon dioxide
You have been hired as a consultant to advise Sandbaggers, Inc., a company that purchases silica sand, cleans it, and then sells the silicon dioxide to manufacturers of computer chips. Sandbaggers, Inc., operates two cleaning plants: Plant A and Plant B. They obtain their supply of silica sand from three independent suppliers (Sand Solutions, Dirt Dudes, and Terra Firma) who are willing to supply the sand in the following amounts and at the following prices: Supplier # of Tons Cost per Ton Sand Solutions 200 $10 Dirt Dudes 300 $9 Terra Firma 400 $8 Shipping costs in dollars per ton from each supplier to each of the plants are as follows: Shipping Cost per Ton From To Plant A To Plant B Sand Solutions $1 $1.50 Dirt Dudes $2 $2.50 Terra Firma $5 $3 Labor costs at each of the plants are as follows: Plant A Plant B Labor Cost $25/ton $20/ton Plant capacities are as follows: Maximum Capacity Plant A Plant B 450 tons 550 tons The cleaned and processed silicon dioxide is sold at $50 per ton to the chip manufacturers. Sandbaggers, Inc., can sell all they can produce. Determine how Sandbaggers, Inc. should plan its operation at the two plants to maximize its profit. The executives of Sandbaggers, Inc. would also like to know whether or not both plants are able to operate at maximum capacity and whether they should look for additional suppliers based on your analysis. Prepare a report for the Sandbaggers, Inc. executives detailing your plan and addressing their questions regarding plant capacity and suppliers. Project Details & Guidelines For this project, you will turn in the report you prepare for the Sandbagger's Inc. executives. Your report for the Sandbagger's Inc. executives should include: 1. An executive summary that includes a brief summary of the problem as you understand it in your own words along with your recommended solution. 2. An explanation of how you set up the problem and arrived at your answers. This should include: o A list of your decision variables and what they represent o Your objective function, what it represents, all math used to obtain it, and a brief explanation of your math o All constraints, what they represent, and a brief explanation of how you determined the constraints 3. A solution to all parts of the problem presented. 4. All work used to reach your solution. Please keep in mind... You should use Excel to help you solve this problem. You must still show and explain how you set up the problem before you enter it into Excel. You should also briefly explain how you used Excel to help you solve the problem. All written answers and explanations should be in complete sentences
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