Question: Hours/Unit needed Model A Model B Hours Available Production 0.2 0.4 10,000 Assembly 0.3 0.5 15,000 Packaging 0.1 0.1 5,000 ACME CO, has a contract

Hours/Unit needed

Model A

Model B

Hours Available

Production

0.2

0.4

10,000

Assembly

0.3

0.5

15,000

Packaging

0.1

0.1

5,000

ACME CO, has a contract to provide a retailer with two models of DOODADS: 30,000 of model A and 15,000 of MODEL B. Production capability is limited as indicated in the table above. Cost to make a model A is $55 and to make model B is $85. A competitor can supply equivalent models for $67 and $95. How many of each model should the company produce and outsource to minimize Overall cost?

#Please show formulas followed by a comment for the Excel Solver solutions. Thank You

Question2

Cost to ship from PLANT TO DISTRIBUTOR

Dist1

Dist2

Dist3

Dist4

Dist5

Dist6

Dist7

Cost to make

Prod Cap

Atlanta

$2.50

$2.75

$1.75

$5.00

$2.10

$1.80

$1.65

$35.50

18,000

Boston

$1.85

$1.90

$1.50

$1.60

$1.00

$1.90

$1.85

$37.50

15,000

Chicago

$2.30

$2.25

$1.85

$1.25

$1.50

$2.25

$2.00

$39.00

25,000

Denver

$1.90

$0.90

$1.60

$1.75

$2.00

$2.50

$2.65

$36.25

20,000

Demand

8,500

14,500

13,500

12,600

18,000

15,000

9,000

ACME CO. Produces Gizmos at plants in Atlanta, Boston, Chicago, and Denver. Information Concerning production and Distribution is in the table above. What is the least expensive way to satisfy at least 80% of the orders received from each distribution? How high can this percentage be adjusted before solutions become infeasible.

#Please show formulas followed by a comment for the Excel Solver solutions. Thank You

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