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  3. consider the bakery example we solved in class for the...

Question: consider the bakery example we solved in class for the...

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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 S32 per cake, Chocolate with profit margin S16 per cake, Strawberry with profit margin S11 per cake, Raspberry with profit margin S11 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, MAXI format: Mango: [20.401: Chocolate: 155.801; Strawberry: IS0.1 201; 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 Strawberryl Raspberry Pineapple Preparing (mins) Avail 2000 mins /da 4 3.5 7.5 Mixing (mins) Avail 3200 mins /day Baking (mins) Avail 10000 mins /day Decorating (mins) Avail 1000 mins /day 14 40 4.5 7.5 6.5 12 34.5 3.5 26.5 32 2.2 2.5 (4 points) Set up the optimization problem using Excel (6 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? a. b. c.

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