Question: Please help I keep getting the wrong answer Consider a pharmaceutical firm making two products. The products are made through two steps: 1) Reactor, and


Please help I keep getting the wrong answer
Consider a pharmaceutical firm making two products. The products are made through two steps: 1) Reactor, and 2) Press. The firm needs to decide how much to make of each product this coming month. Product Resource Resource Sales Materials Price/Revenue Variable Cost" hours needed hours needed Minimum per batch at per batch at Demand per batch per batch Reactor Press Maximum Demand Zithromin $275,000 $20,000 3.5 hours 2.5 hours 100 batches Acithromax $305,000 $40,000 0.5 hours 4 hours 0 100 batches Resource cost at Reactor = $ 22022 per hour Resource cost at Press = $ 6709 per hour In this coming month each operations step has 240 hours available. There is also a $10,600,000 monthly overhead cost for the manufacturing facility. Submit an excel file as attachment for this quiz. 1. Write, in plain text, the linear programming formula for the above case. What are the decision variables? What is the objective function? What are the constraints? Note that you need to calculate the per batch profitability for each product first. 2. On the same excel file, build an Excel model for the above linear programming formula and use Excel Solver to solve the problem. What is the best product mix (how much of each to produce)? Are you making sufficient profit to cover the overhead? (Note: you can have decimal points on the number of batches; no need to be integer.)Step by Step Solution
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