Reference no: EM131796099

I need assistance/direction setting up an excel spreadsheet and guidance and understanding solver tool for the following:

Klein Industries manufactures three types of portable air compressors: small, medium, and large, which have unit profits of $20.50, $34.00, and $42.00, respectively. The projected monthly sales are: 

Small Medium Large 

Minimum 14,000 6,200 2,600 

Maximum 21,000 12,500 4,200 

The production process consists of three primary activities: bending and forming, welding, and painting. The amount of time in minutes needed to process each product in each department is shown below: 

                               Small Medium Large Available Time 

Bending/forming        0.4      0.7      0.8      23,400 

Welding                     0.6      1.0      1.2      23,400 

Painting                     1.4      2.6      3.1      46,800 

How many of each type of air compressor should the company produce to maximize profit? 

a. Formulate and solve a linear optimization model using the auxiliary variable cells method and short memo to the production manager explaining the sensitivity information. 

b. Solve the model without the auxiliary variables and explain the relationship between the reduced costs and the shadow prices found in part a.