Question: Please be sure to include excel/LINGO model in answer and answer each individual question, TIA! 3. (20 marks) Every operating day an oil refinery requires

Please be sure to include excel/LINGO model inPlease be sure to include excel/LINGO model inPlease be sure to include excel/LINGO model in answer and answer each individual question, TIA!

3. (20 marks) Every operating day an oil refinery requires at least 2100 kilograms (kg) of chemical A, 2780 kg of chemical B, and 1500 kg of chemical C. They externally purchase two types of bags which contain these chemicals. Each type 1 bag contains 17.5 kg of chemical A, 10 kg of B, and 2.5 kg of C. Each type 2 bag contains 8.75 kg of chemical A, 14 kg of B, and 15 kg of C. A type 1 bag costs $140, while a type 2 bag costs $200. Storage limitations mean that no more than 290 bags (of both types combined) can be purchased each day. They wish to minimize the daily cost of buying these bags. (Because of the repetitive nature of the operations, the number of bags need not be integer.) We define X1 and X2 to be respectively the number of type 1 and 2 bags purchased each day. minimize 140X1 + 200X2 subject to Chemical A 17.5X1 +8.75X2 > 2100 Chemical B 10X1 + 14X2 > 2780 Chemical C 2.5X1 + 15X2 > 1500 Storage X1 + X2 0 (a) Use either LINGO or the Excel Solver to create the reports needed for sensitiv- ity analysis. (b) What happens to the OFV in the following scenarios? (each is independent of the others) (i) The storage capacity falls by 30 units. (ii) The price per bag of Type 1 falls by $90. (iii) The price per bag of Type 2 falls by $10. (iv) The price per bag of Type 1 falls by $40 while the price per bag of Type 2 increases by $380. (v) The company could decrease what they have to buy of Chemical B by making up to 500 units of Chemical B in its own operations at a cost of $5/kg. (vi) The company could decrease what they have to buy of Chemical C by making up to 300 units of Chemical C in its own operations at a cost of $0.40/kg

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