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Strayer MAt540 week 8 assignment

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Question;Strayer MAt540 week 8 assignmentEast 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)?

 

Paper#60476 | Written in 18-Jul-2015

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