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  3. 3 capacity allocation at a bakery consider the bakery example...

Question: 3 capacity allocation at a bakery consider the bakery example...

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3. Capacity Allocation at a Bakery Consider the bakery example we solved in class for the best capacity allocation. Suppose now that the bakery has become very successful and has expanded. Now they offer five cakes: Mango with profit margin $32 per cake, Chocolate with profit margin $16 per cake, Strawberry with profit margin $11 per cake, Raspberry with profit margin $11 per cake, and Pineapple with profit margin $20 per cake. The minimum and maximum demand for each type of cake (per day) is provided in MIN, MAX] format: Mango: [20.401: Chocolate: [55,80]: Strawberry: [50.120]: Raspberry: [20,70]; Pineapple: [25,60]. They have also expanded their capacity in their four main steps. Please see the following table for both available capacity and how much capacity each cake consumes at a given step. Your goal is to determine how many of each cake to produce per day to maximize profits Mango Chocolate Strawberry Raspberry Pineapple Preparing (mins) vail 2000 mins /da 4 3.5 7.5 Mixing (mins) Baking (mins) Decorating (mins) vail 3200 mins /da 7.5 6.5 8.5 12 vail 10000 mins /day 40 26.5 32 34.5 vail 1000 mins /da 2.2 2.5 3.5 a. (4 points) Set up the optimization problem using Excel b. (5 points) Solve the profit maximization problem. Solving means identifying the best quantities to produce of each cake per day and showing the maximum profits that can be achieved daily (2 points) What is the shadow price of the key resources namely the time available for preparing, mixing, baking, and decorating? c.

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