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Headings:
http://www.scribd.com/doc/8583802/redbrand Page 1 of 17
redbrand 2/14/11 6:52 PM
Outputs: Three tomato products: Canned whole tomatoes, Tomato juice, and Tomato
paste
Decision Variables:
Explore Content
1. OPTIMUM SOLUTION:
Objective Function:
MAXIMIZE PROFIT =
0.0822Wa + 0.0822Wb + 0.066Ja + 0.066Jb + 0.074Pa + 0.074Pb -180000
Calculation in detail:
Using Table 8.8 in the case study,
Tomato cost = 3,000,000 * $0.06 [Average rate 6 cents per pound from growers]
Total Tomato cost = $180,000
So, MAXIMIZE PROFIT = Profit excluding tomato cost – total tomato cost
= 0.0822Wa + 0.0822Wb + 0.066Ja + 0.066Jb + 0.074Pa + 0.074Pb –180,000
SUBJECT TO:
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Quality Constraints:
QUALITY_WHOLE: Wa - 3.0Wb >= 0
QUALITY_JUICE: 3.0Ja – Jb >= 0
Demand Constraints:
Availability Constraints:
AVAILABILITY_A: Wa + Ja + Pa <= 600000 [20% of the total 3,000,000
tomatoes]
AVAILABILITY_B: Wb + Jb + Pb <= 2400000 [80% of the total 3,000,000
tomatoes]
Non-negativity:
Wa, Wb, Ja, Jb, Pa, Pb >= 0
Optimum Solution:
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