Problem 1: Please read problem #12 (page 176) in CH-4, and determine the optimal solutions using Solver based on the given LP formulation (below). The given LP formulation is based on the following information: Week Price/LB 6.90 8.00 1 2 3 4 6.70 6.20 The cost to store a pound of shrimp for one week is $0.20. The other information (numerical parameters) is the same as given in problem 12. The LP formulation based on new information: a) Decision variables: Let B, = pounds of shrimp bought in week i i=1,2,3,4 S = pounds of shrimp sold in week i i=1.2.3.4 I = pounds of shrimp held in storage (inventory) in week i b) Objective function: Total purchase cost = 6.908, +8.00B + 6.703, +620 B. Total sales revenue = 6.905, +8.00 S + 6.70 S3 +62054 Total storage cost = 0.27+0.21 +0.25 +0.2 L Total profit contribution = (total sales revenue) - (total purchase cost) - (total storage cost) 1 Objective: maximize total profit contribution subject to balance equations for each week, storage capacity for each week, and ending inventory requirement for week 4. Max 6.905, +8.005 +6.705, + 6.20-6.90B - 8.008: -6.70B, -6.208.-0.21,-0.213 -0.21,-0.21 C C st. 20.000 + B + B2- 12 + B 13 + B4 S. S. S SA 1. s I. Balance cq. - Week 1 Balance cq. - Week 2 I Balance eq. - Week 3 Balance eq. - Week 4 100,00 Storage cap.-week 1 0 100,00 Storage cap.- week 2 0 100,00 Storage cap.- Week 3 0 1: s I s Is 100,00 Storage cap.-week 4 0 25,000 Read inv. - weck 4 12 all variables 20 Note that the first four constraints can be written as follows: 1.-B. + S= 20,000 1 - 1:+B- S, = 0 12 - 1,+B-S, = 0 Is-L+B-SA=0 Answer: B1, B2, B3, B4, si, , S2 S3 S4, 11, 12, 13, 14, Max Profit =