Question: PLEASE SOLVE USING LINGO AND DO NOT COPY PREVIOUS ANSWERS. DO NOT USE EXCEL. (20 marks) Every operating day an oil refinery requires at least

 PLEASE SOLVE USING LINGO AND DO NOT COPY PREVIOUS ANSWERS. DO

PLEASE SOLVE USING LINGO AND DO NOT COPY PREVIOUS ANSWERS. DO NOT USE EXCEL.

(20 marks) Every operating day an oil refinery requires at least 2100 kilograms (kg) of chemical A, 2780kg of chemical B, and 1500kg of chemical C. They externally purchase two types of bags which contain these chemicals. Each type 1 bag contains 17.5kg of chemical A, 10kg of B, and 2.5kg of C. Each type 2bag contains 8.75 kg of chemical A, 14kg of B, and 15kg 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. (a) Use either LINGO or the Excel Solver to create the reports needed for sensitivity analysis. Include your name and student number on the LINGO/Excel model. (b) What happens to the OFV in the following scenarios? (each is independent of the others) (i) The storage capacity falls by 30 bags. (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 500kgs 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 300kgs of Chemical C in its own operations at a cost of $0.40/kg

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