Question: 2 . RCI Case: Read the RCI case and answer the following questions: a . What are the costs of producing each of the three
RCI Case: Read the RCI case and answer the following questions:
a What are the costs of producing each of the three product in house?
b Develop an LP model to find the optimal production schedule and outsourcing plan that minimizes total cost.
c Which resources are completely used up What are the corresponding shadow prices? If RCI could increase labor capacity in one stageshift which one should they chose?
d What is the optimal production schedule if the hand cream can be outsourced at a cost of $ per carton? What is the maximum price that would make outsourcing hand cream optimal?
e What is the optimal production schedule if demand for each product increases by assume hand cream can be outsourced at $ per carton
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