ALYGOSU Module Five Project Project: Using Linear Programming Models to maximize profits The submission of each weekly project will consist of an Excel workbook (or an R script le if R has been used] and a Word document a minimum of two submissions that have been submitted as attachments. For each weekly project. students should complete their analytic work in an Excel workbook and write a minimum of IBM words in a Word document describing their ndings. The Word document should be according to the APA standards, i.e.. it consists of a title page (including student's name. assignment title. course number and title. the current academic term. instructor's name. and the assignment completion date], and a reference page. The Word submission of each project will consist of three sections: (i) Introduction (ii) Analysis (iii) Conclusion Proiect: A northern hardware company is studying a plan to open a new distribUtion center in southeast. The company plans to rent a warehouse and an adjacent ofce and distribute its main products to the local dealers. The company has decided to initially start with four of its main products: Pressure washers. Snow blowers. Generators. and Water pumps. The table below describes how much each of the products will cost the company {including transportation costs]: Item Cost [in Dollars} Pressure washer 52G Snow blower 49C! Generator 6 ICI {Case of 4 Water Pumps) 66C! Table I: Costs ofproducts in dollars The company has set aside a purchasing monthly budget of $200.000 for the new location. The selling prices {per unit] for each item are given in the table below: Item Selling Price [in Dollars} Pressure washer 699.99 Snow blower Generator Water pump Table I: Revenues of product: in dollars Other than the budget. another of the company's concern is the available space in the warehouse. The warehouse has all} shelves. and each shelf is 31'] ft long and 5 ft wide. Pressure washers and generators each are stored on 5 ft by 5 ft pallets whereas each snow blower is stored on a 6 ft by 5 ft pallet. Furthermore, a 5 ft by 5 ft pallet is used to store ve cases of water pumps. For promoting its brand products. the company's marketing department has decided to allocate at least 45% of its inventory [by item numbers) to pressure washers and snow blowers and sell generators at least Ll times as many as water pumps. Perform a monthly analysis using a linear programming model to maximize the company's net profit. Complete the following in a Word document and in an Excel workbook (or R}. Submit both the III.I"'-.I'ord document and the Excel workbook (or R script le} as attachments. In a Word document. write the mathematical formulation of the problem. Set up the linear programming formulation in an Excel workbook or R. Use the Excel Solver or R to solve the problem and generate a sensitivity report. Describe the optimal solutions obtained in the Word document. These will consist of the inventory level for all four products and the optimal monthly prot. 5. One of the decision variables has an optimal value of zero. Use the Solver sensitivity report to determine the smallest selling price for that item so that this optimal zero solution value changes to a non-zero value. 6. In the word document explain whether, in addition to the EDGE-DD allocated to the purchasing budget during the rst month. the company should allocate additional money. If yes. how much additional investment do you recommend. and how much should the company expect its net monthly profit to increase as a consequence of this increase? F. In the word document. explain whether you recommend that the company should rent a smaller or a larger warehouse. In any case. indicate the ideal size of your recommended warehouse in square feet. and indicate how much this change in the size ofthe warehouse will contribute to the monthly prot. iii-vi\".