robusta javan liberica brazilian robusta

Cost($) 0.6 0.8 0.55 0.7 0.6

Unit 2000 4000 1500 2500 11375
recipe 0.2 0.4 0.15 0.25 0.35

SUMPRODUCT of Cost and Unit is

Production(pound)(= De
WS Price Sales Min. Production by Mktg.
Hotel 10000 1.25 12500 10000
Restaurant 32500 1.5 48750 25000
Market 30000 1.4 42000 30000
Total Sales 103250
Total Cost 48050
Total Profit 55200

Component Cost Used ComponenMax. Wkly Availability(lbs)

Robusta 0.6 16375 40000
Javan Arabica 0.8 19375 25000
Liberica 0.55 20000 20000
Brazilian Arabica 0.7 16750 45000

Max. Capability of plant

Total pounds/week 72500 100000
Column1 Column2 Column3 Column4
Minimum weOptimal profit ($s$7)
10000 55200
10001 55199.915
10002 55199.83
10003 55199.745
10004 55199.66
10005 55199.575
10006 55199.49
10007 55199.405
10008 55199.32
10009 55199.235
10010 55199.15
 javan liberica brazilian robusta javan liberica brazilian

0.8 0.55 0.7 0.6 0.8 0.55 0.7

4875 6500 9750 3000 10500 12000 4500
0.15 0.2 0.3 0.1 0.35 0.4 0.15

ODUCT of Cost and Unit is the value of Total cost $ 48,050.00

A. In order to maximize weekly profit, how many pounds of each component must be purc
Ans: 16375 pounds of Robusta, 19375 pounds of Javan, 20000 pounds of Liberica, 16750 p
Brazilian Arabica are needed
Min. Production by Mktg. B. what is the economic value of n additional pounds worth of plants capacity?
100000 Ans: Economic value is not affected as the full plants capacity itself is not reached.

0.6
GRAPH TO SHOW THE MINIMUM WEEKLY PRODUCTION LEVEL OF THE HOTEL BLEND

POINTS ADDED IN ASSIGNEMEN

B.THE PRICE YOU AE WILLING T

C. THE ANSWER TO ADITIONAL PL

of each component must be purchased
0000 pounds of Liberica, 16750 pounds of

th of plants capacity?
city itself is not reached.

therefore to maximize weekly profit of four companies the pro

liberica is the most worthy plant with worth $4.5 and additiona
 Column1 Column2 Column3
UNIT OF ROBUSTA BEANS
0.7
0.8
0.9
1
1.1
1.2
1.3
1.4
1.5
1.6

POINTS ADDED IN ASSIGNEMENT:

B.THE PRICE YOU AE WILLING TO PAY FOR ADDITIONAL LB OF LEBERICA IS $4.5 LOOK FOR SHADED YELLOW RED PART IN SENSITIVITY REP

THE ANSWER TO ADITIONAL PLANT CPACITY IS THAT THERE IS NO ECONOMIC VALUE TO ADDITIONAL PLANT CAPACITY SINCE THERE IS N
 a. Each component should be purchased as following:
ComponenPurchase Volume(lbs)
Robusta 16375
Javan Arab 19375
Liberica 20000
Brazilian A 16750

profit of four companies the profit is 55200

nt with worth $4.5 and additional pound of 4.5+0.5
 Column4 Column5 Column6
OPTIMAL PROFIT $s$7 GRAPH TO SHOW HWHOW THE OPTIMAL PROFIT VARIES WITH
53562.5
51925
50287.5
48650
47012.5
45375
43737.5
42100
40462.5
38825

OW RED PART IN SENSITIVITY REPORT .SHOWS THAT WE WILL HAVE MORE BENEFITS OF 4.5 DOLLARS WITH EVERY INCREASE PRICE UNTILL

ANT CAPACITY SINCE THERE IS NO INCREASE IN CAPACITY SINCE THEY ALL ARE 0 SHADED IN GRAY THEREFORE THEY WILL NO INCREASE IN
as following:

Refer to the table range p9:s13

E OPTIMAL PROFIT VARIES WITH UNIT COST OF ROBUSTA

H EVERY INCREASE PRICE UNTILL 5500.

FORE THEY WILL NO INCREASE IN PROFIT HENCE NO ECONOMIC VALUE.

0
Engine: Gurobi Solver

Objective Cell (Max)

Cell Name Final Value
$S$7 Total Profit Sales 55200

Decision Variable Cells

Final Reduced
Cell Name Value Cost
$Q$2 Hotel Production(pound)(= Decision Variable) 10000 -0.085
$Q$3 Restaurant Production(pound)(= Decision Variable) 32500 0
$Q$4 Market Production(pound)(= Decision Variable) 30000 -0.965

Constraints
Final Shadow
Cell Name Value Price
$R$16 Sum Used Component 72500 0
$R$10 Robusta Used Component 16375 0
$R$11 Javan Arabica Used Component 19375 0
$R$12 Liberica Used Component 20000 4.25
$R$13 Brazilian Arabica Used Component 16750 0

Ans: Hill-o-beans should be willing to pay $4.25 per an additional pound

Objective Allowable Allowable
Coefficient Increase Decrease
0.5525 0.085 1E+100
0.85 1E+100 0.1133333333
0.735 0.965 1E+100

Constraint Allowable Allowable

R.H. Side Increase Decrease
100000 1E+100 27500
40000 1E+100 23625
25000 1E+100 5625
20000 5500 1500
45000 1E+100 28250
Minimum weekly production level
of the hotel blend Optimal profit
10000 55200 Optimal Profit Vs Minimu
10001 55199.915
10002 55199.83 55200.2
10003 55199.745 55200
10004 55199.66 55199.8
10005 55199.575 55199.6
10006 55199.49
55199.4
10007 55199.405
55199.2
10008 55199.32
10009 55199.235 55199
10010 55199.15 55198.8
55198.6
9998 10000 10002 10004
l Profit Vs Minimum weekly production

10000 10002 10004 10006 10008 10010 10012

UNIT OF ROBUSTA BEANS OPTIMAL PROFIT
0.7 53562.5 Optimal cost vs Unit cost of Rob
0.8 51925
60000
0.9 50287.5
1 48650 50000
1.1 47012.5
1.2 45375 40000
1.3 43737.5
30000
1.4 42100
1.5 40462.5 20000
1.6 38825
10000

0
0.6 0.8 1 1.2 1.4
vs Unit cost of Robusta

1 1.2 1.4 1.6 1.8