Question: 2 . RCI Case: Read the RCI case and answer the following questions: a . What are the costs of producing each of the three

2. 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 stage/shift, which one should they chose?
d. What is the optimal production schedule if the hand cream can be outsourced at a cost of $50 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 10%?(assume hand cream can be outsourced at $50 per carton)

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