Analyse business decision problems, apply mathematical modelling approaches such as Linear Programming or Integer Programming to solve the problems. You must master Excel ‘Add-In’ features such as Solver to obtain the optimal solutions, generate a sensitivity analysis report, and suggest courses of action for management. After reading the Case study, answer the following questions:

1.Demonstrate how this decision problem can be optimised.

2.How does the optimal solution differ from the original allocation? What are the benefits?

3.Can Northwest save money through freight rate discounts on volumes larger than 100,000 tonnes? If so, how much?

4.Should 58,000 tonnes per year machine at Naomee Mills be converted to groundwood specialties?

5.Can you recommend specific ‘delivery swap’ arrangement to improve Northwest’s bottom line?