Question: fYour GM later expressed confidence at securing a cheaper source of raw materials for the production of Ferrari and Maserati toy cars for the period

\fYour GM later expressed confidence at securing\fYour GM later expressed confidence at securing
\fYour GM later expressed confidence at securing a cheaper source of raw materials for the production of Ferrari and Maserati toy cars for the period of October. He would like you to consider lowering the unit cost of production for the Ferrari and Maserati toy cars for October by $2 each. He requested you to provide him with information on the improvement in the optimal production cost. Based on the given information: (a) ('0) Develop a linear programing (LP) model to minimise the production costs of Racer Maker for the planning period of October to December. Your model must be in the form of algebraic equations and inequalities where appropriate. State your assumptions in constructing your LP model More: Your assumptions must be specic to the LP problem) (Assumptions = 6 marks Decision Variables = 9 marks LP model = 18 marks) Solve the LP model using the Excel Solver and present your Answer and Sensitivity Reports. Interpret the terms \"Binding\" and \"Not-binding\" indicated in your Answer Report by referring to the appropriate decision variables. (Answer Report = 3 marks Sensitivity Report = 3 marks Explanations = 6 marks) Without using the Excel Solver, determine the lower cost of production from purchasing the raw materials from a cheaper source for the October production and inform the GM the cost improvement accordingly. Explain the reason[ s) for applying your method of calculations. (Calculations = 6 marks Cost of Improvement = 2 marks Reasons for method used = 2 marks)

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