1. One Word Document with a report outlining your recommendations for the issues listed in the case. The document should also include an appendix for each of the issues showing your algebraic equations and decisions, and a readable screen clip of your Excel output, including the Solver dialogue box (see parts a & b below). This is especially important to show how you used solver.

2. One Excel Spreadsheet with clearly labeled worksheets (one worksheet for each of the issues in the assignment). The work in the worksheets needs to be well organized and clearly labeled, with formulas used appropriately.

Decision 3: Operations - Materials Blending Coase Specialty Paints has begun making paints for the interior design market. The company starts the process by blending four base paint mixes that they buy from major manufacturers. They then add other components to finish off the paint mix to customer specifications. Each of the four base mixes includes pigment, solvent, and three additives. When Coase blends the four base mixes they want the final product to be within these specifications (these numbers are a percentage of total volume):

Pigment: 25% x 30%

Solvent: 60% x 65%

Additive 1: 3% x 5%

Additive 2: 5% x 7%

Additive 3: 1% x 5%

For the given below. Recommend what percentage of each base mix should be included in the blend to achieve specifications listed, keeping input costs as low as possible. Base mix 3 is purchased overseas and thus the price fluctuates due to currency exchange rates. Comment on how the percentage of each base included in the blend would change if the cost for mix 3 falls to $17 per unit and note what would happen to the total cost in this situation. ( note: you do not need units of volume, use the percentages)

The specifications of each of the four base mixes before they are blended together is: Base 1 Base 2 Base 3 Base 4 25.0% 30.0% 30.0% 48.0% 25.0% 67.5% 60.0% 55.0% Pigment Volume Solvent Volume Additive 1 Volume Additive 2 Volume 10.0% 5.0% 0.0% 5.0% 6.0% 5.0% 2.0% 10.0% Additive 3 Volume 5.0% 6.0% $15 5.5% $22 0.0% $40 Unit Cost $27 The specifications of each of the four base mixes before they are blended together is: Base 1 Base 2 Base 3 Base 4 25.0% 30.0% 30.0% 48.0% 25.0% 67.5% 60.0% 55.0% Pigment Volume Solvent Volume Additive 1 Volume Additive 2 Volume 10.0% 5.0% 0.0% 5.0% 6.0% 5.0% 2.0% 10.0% Additive 3 Volume 5.0% 6.0% $15 5.5% $22 0.0% $40 Unit Cost $27