Question

Solve in excel and show ALL the steps taken to get the answer.

RC manufactures Brute and Chanelle perfumes. Raw material can be purchased for $3 per pound. Processing 1 lb of raw material requires 1 hour of laboratory time. Each pound of processed material yields 3 oz of Regular Brute and 4 oz of Regular Chanelle. Regular brute can be sold for $7/oz and regular Chanelle for $6/oz. RC can further process Reg. Brute and Reg. Chanelle to produce Lux. Brute sold at $18/oz and Lux. Chanelle, sold at $14/oz.. Each ounce of Reg. Brute processed further requires an additional 3 hours of lab time, $4 processing cost and yields 1 oz of Lux. Brute. Each ounce of Reg. Chanelle processed further requires an additional 2 hours of lab time, $4 processing cost and yields 1 oz of Lux. Chanelle.Each year, Rylon has 6,000 hours of lab time available and can purchase up to 4,000 lb of raw material. Formulate an LP that helps RC to maximize profits.

Answer 1

Answers:
Perfume type	Sold per year	Unit Cost	Total
Regular brute	11333.33	7	79333.33
Luxury brute	666.6667	14	9333.333
Regular Chanelle	16000	6	96000
Luxury Chanelle	0		0
raw material bought last year	4000	3	12000
			172666.7

Feed-in data in excel: >add formulas as given>go to data tab>solver>enter constraints>solve

Constraints:

Formulas:

Explanation:

Max =7 RB (SP/UNIT)+18 LB (SP/UNIT)+6 RC(SP/UNIT)+14 LC(SP/UNIT)-4LB(processing cost)-4LC (processing cost)-3 (raw material cost)

Constraints

Lab time available (Hrs)

6000

Raw material (lb per year)

4000

Total ounces of RB and LB sold is equal to the number of brute produced per pound of raw material

Total ounces of RC and LC sold is equal to the number of Chanelle produced per pound of raw material

Information in the table:

		SP ($/Oz)	Material cost ($)	Processing material yield	Lab time	Processing cost	Yield
Regular Brute	RB	7	3	3
Luxury Brute	LB	18	3	3	3	4	1
Regular Chanelle	RC	6	3	4
Luxury Chanelle	LC	14	3		2	4	1
Lab time available (Hrs)	6000
Raw material (lb per year)	4000