RMC, Inc., is a small firm that produces a variety of chemical-based products. In a particular production process, three raw materials are used to produce two products: a fuel additive and a solvent base. The fuel additive is sold to oil companies and is used in the production of gasoline and related fuels. The solvent base is sold to a variety of chemical firms and is used in both home and industrial cleaning products. Three raw materials are blended to form the fuel additive and solvent base as indicated in Table A. It shows that a ton of fuel additive is a mixture of 0.4 ton of material 1 and 0.6 ton of material 3. A ton of solvent base is a mixture of 0.5 ton of material 1, 0.2 ton of material 2 , and 0.3 ton of material 3. RMS's product is constrained by a limited availability of three raw materials. For the current production period, RMS has available the following quantities of each raw material. Amount Available Material for Production Material 1 20 tons Material 2 5 tons Material 3 21 tons The accounting department analyzed the production figures, assigned all relevant costs, and arrived at prices for both products that will result in a profit contribution of $40.00 for every ton of fuel additive produced and $30.00 for every ton of solvent based producted. Use linear programming to determine the number of tons of fuel additive and the number of tons of solvent base to produce in order to maximize total profit contribution

1. Write out the Linear Programming Model

2. Set up a chart with all the model parameters

3. Create the Solver problem and highlight the appropriate cells as demonstrated in class.

4. Use Solver and Solver the problem. Create the Sensitivity Report.

5. Change the name of the Sensitivity Report to Prob # Sensitivity Report.

Answer rating: 100% (QA)

1 Step1 Decide decision variables F tons of fuel additive produced S ... View the full answer