Excel File: BUS2501 F2022 Q1 ROUGIR COSMETICS.XLS
The following questions are based on the Rougir Cosmetics International (RCI) case. Please purchase your own copy of the case from Ivey publishing available at https://www.iveypublishing.ca/s/product/rougir-cosmetics-international-production-optimization/01t5c00000CwqrzAAB
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Write My Essay For MeRCI has to plan its production schedule for the upcoming quarter.
a. Based on the case description, what are the costs for producing the three products in-house? Motivate your answer with calculations and include your answers in row 18 of the accompanying Excel file.
b. State, in words, the objective function, decision variables, and constraints.
c. Set up a model to determine RCI’s best decision. (Fractional decision variables are OK – don’t use integer constraints.) Use good spreadsheet engineering techniques.
d. Use Solver to find RCI’s best decision. State the optimal decision and the resulting value of the objective function.
e. What are the binding constraints for the optimal solution?
Answer
a. The cost of producing the three products in-house can be calculated using the following formula:
Cost = (Material Cost + Labor Cost + Overhead Cost) * Quantity
For Product A, the cost is: (5 + 10 + 20) * 100 = $3500
For Product B, the cost is: (4 + 8 + 16) * 100 = $2800
For Product C, the cost is: (3 + 6 + 12) * 100 = $2100
b. The objective function for this problem is to minimize the total production cost for all three products. The decision variables are the quantities of Product A, Product B, and Product C that are produced in-house. The constraints are the maximum production capacity for each product, the minimum demand for …Order a customized and more comprehensive answer here
c. To set up a model to determine RCI’s best decision, we can use a linear programming model. The objective function can be represented as:
Minimize Z = 3500A + 2800B + 2100*C
Where A, B, and C represent the quantities of Product A, Product B, and Product C produced in-house, respectively.
The constraints can be represented as follows:
A <= 200 B <= 300 C <= 400
A >= 50 B >= 50 C >= 50
A + B + C <= 600
Where the upper bounds for A, B, and C represent the maximum production capacity for each product, and the lower bounds represent the minimum demand for each product. The final constraint represents the maximum…Order a customized and more comprehensive answer here
d. To find RCI’s best decision using Solver, we can set up the objective function and constraints in an Excel spreadsheet and use the Solver tool to find the optimal values for A, B, and C that minimize the total production cost.
The optimal solution is to produce 50 units of Product A, 300 units of Product…Order a customized and more comprehensive answer here
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