Question: Please Provide LP Formulation and Solve in Excel (with formulas) You own a wheat warehouse with a capacity of 20,000 bushels. At the beginning of
Please Provide LP Formulation and Solve in Excel (with formulas)
You own a wheat warehouse with a capacity of 20,000 bushels. At the beginning of month 1 you have 600 bushels of wheat. Each month, wheat can be bought and sold at the prices per 1000 bushels shown in the table below. The sequence of events during each month is as follows:
- You observe your initial stock of wheat.
- You can sell any amount of wheat up to your initial stock at the current months selling price.
- You can buy as much wheat as you want, subject to the cash availability (on hand) and the warehouse size limitation.
Your goal is to determine how to maximize the profit earned over the next ten months
(Hint: You need to make sure that cash ending balances be nonnegative for every periods)
| Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Selling Price (K$/1000 bushels) | 3 | 6 | 7 | 1 | 4 | 5 | 5 | 1 | 3 | 2 |
| Purchasing Price (K$/1000 bushels) | 8 | 8 | 2 | 3 | 4 | 3 | 3 | 2 | 5 | 5 |
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