Question 1
ChocoStorm produces two types of chocolate: ChocoA and ChocoB. They are mainly made from milk and cocoa. The supply and demand of these two raw materials are shown in the table below. ChocoA and ChocoB's profits per kilogram are $6 and $8, respectively. ChocoStorm wants to maximise profits.
Kgs of raw material needed to make one
ChocoA
Milk Cocoa
1
1
kg of
ChocoB
2
1
Maximal daily raw material
supply (kgs)
3
2
(a) Develop a linear programming model for the problem. Assume that the chocolate produced every day can be sold out on the same day.
(b)
If you have a Solver sensitivity report for the model you developed in Part (a), explain how to use the relevant information in the report to answer the following questions.
(i)
(ii)
How does a 0.5 kg increase in milk supply affect maximum profit?
If ChocoA's profit per kilogram becomes $7, will the original solution remain optimal?
Question 2
(25 marks)