Question;East Anglia;Tea Company;The East Anglia Tea Company imports three;varieties of tea from Asia: black tea, oolong tea, and green tea. The company;purchases 70 pounds of black tea every week, at a cost of $2.70 per pound.;Also, it purchases 120 pounds of oolong tea at $3.00 per pound, and 150 pounds;of green tea at $2.10 per pound, every week. By mixing these teas in various;combinations, the company creates three tea blends, Mongolian, Manchu, and;House, that it sells to a packaging company for further processing. Mongolian;blend is at least 70% black tea but no more than 10% green tea. Manchu blend is;at least 30% black tea and at least 40% oolong tea. The company?s House blend;is no more than 60% green tea, but its oolong tea component must be at least;30%. The wholesale prices per pound that East Anglia charges the packaging;company are $6.50 for Mongolian blend, $7.25 for Manchu blend, and $6.00 for;House blend.;(a.) How much of each blend should the East Anglia Tea Company make each;week to maximize its profit? Create a linear programming model, and solve it;using the Solver utility of Excel.;(b.)Discuss the sensitivity ranges of the decision variables. Point out;and explain any interesting facts about those ranges.;(c.) Discuss the sensitivity ranges that pertain to the total amounts (of;the three tea varieties) purchased each week. How would variations in those;amounts affect the optimal product mix? What do the shadow prices imply about;the relative values of the three resources (teas)?;Assignment 1. Linear Programming Case Study;Your;instructor will assign a linear programming project for this assignment;according to the following specifications.;It;will be a problem with at least three (3) constraints and at least two (2);decision variables. The problem will be bounded and feasible. It will also have;a single optimum solution (in other words, it won?t have alternate optimal;solutions). The problem will also include a component that involves sensitivity;analysis and the use of the shadow price.;You;will be turning in two (2) deliverables, a short writeup of the project and the;spreadsheet showing your work.;Writeup.;Your;writeup should introduce your solution to the project by describing the;problem. Correctly identify what type of problem this is. For example, you;should note if the problem is a maximization or minimization problem, as well;as identify the resources that constrain the solution. Identify each variable;and explain the criteria involved in setting up the model. This should be;encapsulated in one (1) or two (2) succinct paragraphs.;After;the introductory paragraph, write out the L.P. model for the problem. Include;the objective function and all constraints, including any non-negativity;constraints. Then, you should present the optimal solution, based on your work;in Excel. Explain what the results mean.;Finally;write a paragraph addressing the part of the problem pertaining to sensitivity;analysis and shadow price.;Excel.;As;previously noted, please set up your problem in Excel and find the solution;using Solver. Clearly label the cells in your spreadsheet. You will turn in the;entire spreadsheet, showing the setup of the model, and the results.
Paper#60314 | Written in 18-Jul-2015Price : $47