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  • Optimize tomato product mix for maximum profit

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    Vinod Kumar G
    438 views2 pages
    The document describes a linear programming problem faced by Red Brand Canners to determine the optimal product mix of whole tomatoes, tomato juice, and tomato paste to maximize profits. The objective is to maximize total contribution given by W, J, and P. There are 6 constraints related to raw material usage and production capacities. Solving the linear program using a solver yields the optimal solution of 38889 cases of whole tomatoes, 15000 cases of tomato juice, and 80000 cases of tomato paste, resulting in a maximum profit of $45,355.56.

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    Red Brand Canners

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    The document describes a linear programming problem faced by Red Brand Canners to determine the optimal product mix of whole tomatoes, tomato juice, and tomato paste to maximize profits. The objective is to maximize total contribution given by W, J, and P. There are 6 constraints related to raw material usage and production capacities. Solving the linear program using a solver yields the optimal solution of 38889 cases of whole tomatoes, 15000 cases of tomato juice, and 80000 cases of tomato paste, resulting in a maximum profit of $45,355.56.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    438 views2 pages

    Optimize tomato product mix for maximum profit

    Uploaded by

    Vinod Kumar G
    The document describes a linear programming problem faced by Red Brand Canners to determine the optimal product mix of whole tomatoes, tomato juice, and tomato paste to maximize profits. The objective is to maximize total contribution given by W, J, and P. There are 6 constraints related to raw material usage and production capacities. Solving the linear program using a solver yields the optimal solution of 38889 cases of whole tomatoes, 15000 cases of tomato juice, and 80000 cases of tomato paste, resulting in a maximum profit of $45,355.56.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    RED BRAND CANNERS

    Decision variables:
    W no of cases of whole tomatoes
    J no of cases of tomato juice
    P no of cases of tomato paste
    Objective function :
    Maximize Z = 1.48W+1.32+1.85P
    Constraints :
    18W+20J+25P <= 3000000
    18*(0.75)W + 20(0.25)J <=600000
    18*(0.25)W + 20(0.75)J <=2400000
    W<=800000
    J<=50000
    P<=80000
    We have not incorporated the cost price of individual fruit as it is the fixed price of amount
    $(3000000*0.06) which got deducted from total contribution to determine the profit.
    Solution using solver :

    W
    No of cases

    38888.89

    15000

    80000

    1.48

    1.32

    1.85

    C1

    18

    20

    25

    3000000 <=

    3000000

    C2

    13.5

    600000 <=

    600000

    C3

    4.5

    15

    480000 <=

    2400000

    C4

    38888.89 <=

    800000

    C5

    15000 <=

    50000

    C6

    80000 <=

    80000

    Profit

    225355.6

    The right product mix would be 38889 cases of Whole tomatoes, 15000 cases of tomato
    juice and 80000 cases of tomato paste.
    Profit after discounting the cost price of 30,00,000 pound tomatoes.
    = 225355.6 (3000000 * .06)
    = $ 45355.56

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