[Question: Develop a spreadsheet model for the following example and solve it using Excels solver. ]

An electrical manufacturer produces three products: clocks, radios and toasters. These products have the following pricing and resource requirements: selling price and cost price and labour units required for each of the three products. Cost/Unit($) Sold/Unit($) Labour/Unit(hr) Clock 7 15 2 Radio 10 2d 3 Toaster 5 12 1 Maximum daily demand for clocks, radios and toasters is 200, 300, and 150, respectively. The manufacturer has a daily production budget of $2,000 and at most 600 hours of labour. In-process inventory space is available for a combined total of 500 units. The manufacturer desires to know the optimal product mix that will maximise profit. Define the objective of the model Maximise Profit Define the activities Produce clocks, radios and toasters Define resources labour, production budget, inventory space Calculate the input/output coefficients given as data LP Model: Decision variables Let x7, X2, xz be the number of units of clock, radios and toasters to be produced daily respectively Objective function is to max the net profit which is selling price cost price Maximise Z= 8x + 10x2 + 7xz System constraints Labour: 2xy + 3x2 + xz s 600 Production budget: 7x; + 10x2 + 5x3 s 2000 Inventory space: x1 + x2 + x2