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Your company makes hand sanitizer in two lines: Moisturizing+, and StandardSoap. On the market, Moisturizing+ retails for $175/L and StandardSoap retails for $95/L. You make
Your company makes hand sanitizer in two lines: Moisturizing+, and StandardSoap. On the market, Moisturizing+ retails for $175/L and StandardSoap retails for $95/L. You make the hand sanitizer by combining lotion, soap, and secret ingredient Speciald These ingredients are purchased from a mysterious supplier, and you can purchase at most 4000L of lotion, 5000L of soap, and 750L of Special in a month. Lotion costs $25/L, soap costs $10/L, and Special X costs $35/L. To make 1L of Moisturizing+, you need to combine 0.5L of lotion, 0.3L of soap, and 0.2L of SpecialX, To make 1L of StandardSoap, you need to combine 0.4L of lotion, 0.55L of soap, and 0.05L of SpecialX Your company has committed to donating 500L of StandardSoap to a local charity. Since this is a donation, you will not receive any revenue. However, the costs and purchasing limits apply to both the hand sanitizer that is sold on the market and donated to charity. You want to maximize your monthly profit. 1. Assume that demand is high and you can sell all your hand sanitizer at the current level of resources. Write down the linear program to determine the optimal production mix. 3. You find a new supplier who can sell you an unlimited supply of lotion, soap, and Speciald at the same costs. a) Which constraints should you removed from your LP from Q1? b) Set up the corresponding LP in Excel and run Solver. c) Take a screenshot of Solver's solution [PrtScn on your keyboard]. Interpret Solver's response. Does it makes sense to follow Solver's suggested production mix? Iou want to maximize your monthly profit. 1. Assume that demand is high and you can sell all your hand sanitizer at the current level of resources. Write down the linear program to determine the optimal production mix. 3. You find a new supplier who can sell you an unlimited supply of lotion, soap, and SpecialX at the same costs. a) Which constraints should you removed from your LP from Q1? b) Set up the corresponding LP in Excel and run Solver. c) Take a screenshot of Solver's solution [PrtScn on your keyboard]. Interpret Solver's response. Does it makes sense to follow Solver's suggested production mix ? 4. Suppose you want to market Moisturizing + as a limited edition product. You decide that at most 10% of all hand sanitizer sold in retail are from the Moisturizing+ product line. Write a constraint to reflect this restriction on your production mix. You do not need to find the new solution in Excel
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