Romans sells the Regular blend for $3.60 per pound and the DeCaf blend for $4.40 per pound. Romans would like to place an order for the Brazilian and Colombian coffee beans that will enable the production of 800 pounds of Romans Regular coffee and 300 pounds of Romans DeCaf coffee. The production cost is $0.80 per pound for the Regular blend. Because the extra steps required to produce DeCaf, the production cost for the DeCaf blend is $1.05 per pound. Packaging costs for both products are $0.25 per pound. (a) Formulate a linear programming model that can be used to determine the pounds of Brazilian Natural and Colombian Mild that will maximize the total contribution to profit. (Le BR pounds of Brazilian beans purchased to produce Regular, BD = pounds of Brazilian beans purchased to produce DeCaf, CR= pounds of Colombian beans purchased to produce Regular, and CD= pounds of Colombian beans purchased to produce DeCaf.) Max s.t. Regular % constraint DeCaf % constraint Pounds of Regular Pounds of DeCaf BR+ CR900 (b) What is the optimal solution? (BR, BD, CR, CD) = x (c) What is the contribution to profit (in $)? (Round your answer to two decimal places.) $ 2786.18 X

Romans sells the Regular blend for $3.60 per pound and the DeCaf blend for $4.40 per pound. Romans would like to place an order for the Brazilian and Colombian coffee beans that will enable the production of 800 pounds of Romans Regular coffee and 300 pounds of Romans DeCaf coffee. The production cost is $0.80 per pound for the Regular blend. Because the extra steps required to produce DeCaf, the production cost for the DeCaf blend is $1.05 per pound. Packaging costs for both products are $0.25 per pound. (a) Formulate a linear programming model that can be used to determine the pounds of Brazilian Natural and Colombian Mild that will maximize the total contribution to profit. (Le BR pounds of Brazilian beans purchased to produce Regular, BD = pounds of Brazilian beans purchased to produce DeCaf, CR= pounds of Colombian beans purchased to produce Regular, and CD= pounds of Colombian beans purchased to produce DeCaf.) Max s.t. Regular % constraint DeCaf % constraint Pounds of Regular Pounds of DeCaf BR+ CR900 (b) What is the optimal solution? (BR, BD, CR, CD) = x (c) What is the contribution to profit (in $)? (Round your answer to two decimal places.) $ 2786.18 X

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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