Question: please send us an excel files for better understanding with the formula thank you. Use MS Excel and the Excel Solver to find a suitable
please send us an excel files for better understanding with the formula thank you.
Use MS Excel and the Excel Solver to find a suitable solution to the following problem:
The Fine Coffee Company produces two brands of coffee, Aroma (A) and Brezilo (B). The production planner is constrained by the following limitations:
- Only 300kg of Columbia beans would be available at most each week, and only 200kg of Dominican beans would be available at most each week.
- Each kg of Aroma coffee requires 12kg of Columbia beans and 4kg of Dominican beans.
- Each kg of Brezilo coffee requires 8kg of Columbia beans and 8kg of Dominican beans.
- The expected profit from the Aroma blend is $2.00 per kg; the expected profits from the Brezilo blend is $1.00 per kg.
Instructions
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In an Excel spreadsheet, state the objective function and the constraint equations in this linear programming exercise.
- Formulate this problem in a format that is conducive to the use of the Excel Solver.
- Use Excel Solver to produce a linear programming report of the solution that should maximise the Fine Coffee Company's profit per week.
- Interpret this report by clearly stating below the report, the maximum profit the company would make, the optimum quantity of each blend that would be made each week, and the quantities of beans that would be remaining at the end of the week.
- Explain briefly in the context of this problem, what you understand by the terms shadow price, reduced cost and a bounded variable.
- Submit to the Dropbox in Excel format.
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