Question: You must design and run an optimization model using Solver Add-in Excel for a coffee caf. Your goal is to find the right number of

You must design and run an optimization model using Solver Add-in Excel for a coffee caf. Your goal is to find the right number of beverages to be sold each month for maximum profit considering the constraints listed below.

You must design and run an optimization model

  1. Resources Used
  2. Milk not utilized cannot be stored and will go to waste. (You want to avoid this; thus, you would like to utilize as much (if not all) milk as you can)
  3. You need to use a minimum 150 tea bags.
  4. You need to sell a minimum reasonable amount of each type of beverage. What is the reasonable amount (50 or 100 or more): You need to decide for yourself and justify your decision.

Requirements

  1. Maximum profit; given the constraints and resources available.
  2. Explain your results to the business owner and make recommendations.
  3. Submit your recommendation and the excel sheet on the blackboard.
  4. PLEASE NOTE:
    1. Write your recommendation in a manner appropriate to communicate with a business client. Explain the reasons for your recommendation.
    2. The business owner neither understands nor care for your excel analysis but needs your recommendation in the language he/she can understand.
Raw material required for 1 cup of each Regular Coffee Decaf Coffee Hazelnut Tea 0 Coffee Raw Human Hours Water (lbs) Milk (lbs) Tea Bags 4 2 1 0.25 1 1.5 1 0.25 1.5 0 4 3 0 2 4 0 3 2 0 Available Raw Material Each Month 2500 Selling Price Regular Coffee Decaf Coffee Hazelnut Coffee Raw Human Hrs Water Milk Tea Bags 1800 $2 $1.6 $4 $3.7 400 Tea 2500 300 Raw material required for 1 cup of each Regular Coffee Decaf Coffee Hazelnut Tea 0 Coffee Raw Human Hours Water (lbs) Milk (lbs) Tea Bags 4 2 1 0.25 1 1.5 1 0.25 1.5 0 4 3 0 2 4 0 3 2 0 Available Raw Material Each Month 2500 Selling Price Regular Coffee Decaf Coffee Hazelnut Coffee Raw Human Hrs Water Milk Tea Bags 1800 $2 $1.6 $4 $3.7 400 Tea 2500 300

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