As shown in the attachment I have part a done and I need help on parts b, c and d. Please use attachment to carry out parts b, c and d. Problem: Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades oranges on a scale of 1 (poor) to 10 (excellent). At present, Sunblessed has 220,000 pounds of grade 6 oranges and 150,000 pounds of grade 9 oranges on hand. The average quality of oranges sold in bags must be at least 7, and the average quality of the oranges used to produce orange juice must be at least 8. Each pound of oranges that is used for juice yields a revenue of $2.25 and in- curs a variable cost (consisting of labor costs, variable overhead costs, inventory costs, and so on) of $1.35. Each pound of oranges sold in bags yields a revenue of $2.00 and incurs a variable cost of $1.20. a. Determine how Sunblessed can maximize its profit. b. Use SolverTable to determine how a change in the cost per bag of oranges changes the optimal solution. c. Use SolverTable to determine how a change in the amount of grade 6 oranges available affects the optimal solution. d. Use SolverTable to determine how simultaneous changes in the required average quality required for juice and the average quality required for bags change the optimal solution.
As shown in the attachment I have part a done and I need help on parts b, c and d. Please use attachment to carry out parts b, c and d.
Problem: Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades oranges on a scale of 1 (poor) to 10 (excellent). At present, Sunblessed has 220,000 pounds of grade 6 oranges and 150,000 pounds of grade 9 oranges on hand. The average quality of oranges sold in bags must be at least 7, and the average quality of the oranges used to produce orange juice must be at least 8. Each pound of oranges that is used for juice yields a revenue of $2.25 and in- curs a variable cost (consisting of labor costs, variable overhead costs, inventory costs, and so on) of $1.35. Each pound of oranges sold in bags yields a revenue of $2.00 and incurs a variable cost of $1.20.
a. Determine how Sunblessed can maximize its profit.
b. Use SolverTable to determine how a change in the cost per bag of oranges changes the optimal solution.
c. Use SolverTable to determine how a change in the amount of grade 6 oranges available affects the optimal solution.
d. Use SolverTable to determine how simultaneous changes in the required average quality required for juice and the average quality required for bags change the optimal solution.
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x fx Selling oranges and orange juice
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A
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1 Selling oranges and oilange juice
2
Revenues, variable costs
4
Bags
$2.00
5 Revenue
$2.25
6
Variable cost
$1.35
$1.20
7
8
Grades used to make juice and bags
9
Grade
Juice
10
6
26666.6667
Bags
193333.333
53333 96666.6667
11
9
12
Sold
80000
290000
13
14 Required average quality
15
Juice
Bags
7
16
8
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18 Quality constraints
19
20 Actual
Juice
640000
X=
640000
21
Bags
2030000
X
2030000
Bags
$108,000 $348,000.00.
$180,000 $580,000.00
22 Required
23
24 Total variable cost
25 Total revenue
26
27 Profit
$72,000 $232,000.00
$304,000.001
28 Total Profit
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Juice
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220000
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Module 3 Problem Workbook (3)
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Set Objective:
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To: O Max
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Value Of:
By Changing Variable Cells:
$B$10:$C$11
Subject to the Constraints:
$B$20:$C$20 >= $B$22:$C$22
$D$10:$D$11 <= $F$10:$F$11
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1 Selling oranges and orange juice
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Revenues, variable costs
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5 Revenue
6 Variable cost
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8 Grades used to make juice and bags
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Grade
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Sold
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14 Required average quality
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18 Quality constraints
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20 Actual
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22 Required
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24 Total variable cost
25 Total revenue
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28 Total Profit
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P4-46
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Selling oranges and orange juice
B
Juice
2.25
1.35
26666.6666666667
53333.3333333333
193333.333333333
96666.6666666667
=SUM(C10:C11)
=SUM(B10:B11)
Juice
Bags
8
Juice
Bags
=SUMPRODUCT(A10:A11,B10: =SUMPRODUCT(A10:A11,C10
>
>
=B16 B12
=C16*C12
Bags
Juice
=B6*B12
=C6*C12
=B5*B12
=C5*C12
=825-B24
=C25-C24
=B27+C27
P4-50
JUN
20
P4-48
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B A
Juice
7
2
1.2
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Bags
Bags
4
=B10+C10
=B11+C11
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