Question: 1* Edwards Electric Company orders 3 components from 4 different suppliers. The suppliers each have limited capacity and no one supplier can meet all of

1* Edwards Electric Company orders 3 components

1* Edwards Electric Company orders 3 components from 4 different suppliers. The suppliers each have limited capacity and no one supplier can meet all of Edwards' component orders. Also, the suppliers charge different prices for the three components that Edwards needs. Supplier 1 Supplier 2 Supplier 3 Supplier 4 Orders Component 1 $8 / unit $6 / unit $7 / unit $5 / unit 1500 units Component 2 $15 / unit $14 / unit $16 / unit $17 / unit 1200 units Component 3 $6 / unit $3 / unit $4 / unit $5 / unit 1000 units Capacity 600 units 1200 units 1600 units 800 units Each supplier has a limited production capacity that can be devoted to filling Edwards's orders. However as long as Edwards places the order by a specified deadline, each supplier can devote its capacity to producing components in any combination that does not exceed their total capacity. (As an example, Supplier 1 could make 100 Component 1's, 350 Component 2's and 150 Component 3's.) Due to contractual obligations, Edwards has promised to spend at least $4200 with each of the first three suppliers and at least $5200 with Supplier 4. Formulate al Linear Program to determine the optimal number of units of each component to order from each supplier in order to fill these orders at a minimum cost. (a) Solve the problem using Excel and interpret the solution. (b) Specify how much unused capacity each of the four suppliers would have according to the optimal solution. (c) Would the optimal purchase mix change, if the price that Supplier 4 charges for each unit of Component 2 had been $17.50 rather than $17? (d) What would the revised minimum cost be if Edwards Electric needed to order an additional 100 units of Component 1? (e) What would the revised minimum cost be if the capacities for the 4 Suppliers changed from 600, 1200, 1600 and 800 units to 750, 1100, 1500 and 880, respectively

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