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%) Bark’s Pet Food Company produces canned cat food called Cat Chow and canned dog food called Dog Dinner. The company produces the pet food from beef, ground fish, and a cereal additive. Each week the company has 600 pounds of beef, 800 pounds of ground fish, and 1,000 pounds of grain additive available to produce both kinds of pet food. Cat Chow must be at least 50% fish, and Dog Dinner must be at least 50% beef. The company has 2,250 16-ounce cans available each week. A can of Cat Chow earns $0.80 in profit, and a can of Dog Dinner earns $0.96 in profit. The total fixed costs for running Bark’s per week is $1,400.
1. Model this linear program in Excel and name the worksheet “LP Problem”. Use Excel Solver to determine the optimal recipe of both Cat Chow and Dog Dinner, how many cans of Cat Chow and Dog Dinner to produce each week, and what the maximum weekly profit will be.
Answer the following sensitivity questions with Excel Solver and SolverTable. Name the worksheets appropriately.
2. If Bark’s fish supplier reduces the available number of ounces to 10,000 per week, how will the recipes change, how many cans of Cat Chow and Dog Dinner will be made, and what will be the new maximum weekly profit?
3. Next week, Bark’s can supplier plans to make some changes in the amount of cans available to their mid-tier clients like Bark’s. The order amount has yet to be decided but only in between 2,000 to 3,000 cans per week in increments of 100 will be available to Bark’s. Assume there is no price difference between the order levels per can (i.e. the profit Cat Chow and Dog Dinner do not change). What will the optimal product mix and the maximum weekly profit be for each order level between 2,000 and 3,000 in increments of 100? What order level would Bark’s prefer and why?
4. Bark’s would like to better understand its weekly breakeven point. Vary the profit of Cat Chow and Dog Dinner to determine what combinations of Cat Chow and Dog Dinner will result in Bark’s breaking even ($0 total weekly profit). Describe in your report these ranges of breaking even or just barely negative weekly profit.
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