Rose Food Company (R omergenCy food tune
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Rose Food Company (RFC) produces many different types of food. Among them, two types of
emergency tood, type T and type C, are very demanding. RFC has received a contract to provide an
international aid agency with type T and C emergency food. The variables T and C represent the
number of tons of type T and type C, respectively, produced in a period. Type T emergency food
takes 12 hours, and type C takes 4 hours to produce one ton of food, respectively. The total number
of work hours available per period is 4200 hours. One ton of Type T uses 0.75 tons of flour, and one
ton of Type C uses 0.5 tons of flour, 290 tons of flour are available for a period, and no more can be
bought.
Goal 1: The company is committed to providing the aid agency at least 240 tons of type T emergency
food in a period.
Goal 2: The demand for Type C emergency food in the market is at most 300 tons.
Goal 3. The total number of work hours available per period should not exceed 4200 hours.
Assume that goals 1 and 2 are Pi priority level goals and that goal 3 is a Pa priority level goal.
(a) Clearly define the deviation variable/s.
(b) Suppose that goals 1 and 2 are equally important, formulate the goal programming model for
the RFC problem.
(c) Suppose that extra Type T emergency food, if produced, has to be held in inventory. The
company would like to minimize the number of Type T emergency food held in inventory. For
this decision-making problem, the company would like to assign a weight of 3 to the associated
deviation variable. To which deviation variable/s defined in part (a) should the weight of 3 be
given?
(d) Suppose that a shortage of Type C emergency food, if occurred, loses the business
opportunity, and the company would like to minimize the number of Type C emergency food
shortages For this decision-making problem, the company would like to assign a weight of 2 to
the associated deviation variable. To which deviation variable/s defined in part (a) should the
weight of 2 be given?
(e)
If RFC management believes that providing type C food is twice as important as providing type
T food, what should RFC do? State revised objective function only.
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