Red Brand Canners Essay

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Red Brand
Canners
Case Study
Red Brand Canners
2
Summary
Context ............................................................................................................................................................. 3
Purpose of the document ................................................................................................................................. 3
Cooper’s solution .............................................................................................................................................. 4
Myers’ solution ................................................................................................................................................. 4
Our Solution …show more content…
So, from now on we will consider the profit excluding OHD.
Parameter Calculation Value
 ($/lbs) 4.00 − 2.52
18
0.0822
 ($/lbs) 4.00 − 2.52
18
0.0822
 ($/lbs) 4.50 − 3.18
20
0.0660
 ($/lbs) 4.50 − 3.18
20
0.0660
  ($/lbs) 3.80 − 1.95
25
0.0740
  ($/lbs) 3.80 − 1.95
25
0.0740
"# ($) 3,000,000 × 0.06 180,000
Our objective is to maximize the function P with certain constraints:
1.1 Demand constraints
Since production must not exceed demand, here are the constraints for the three different tomato products: Constraint Formula
Demand for whole tomatoes  +  ≤ 14,400,000
Demand for tomato juice 
 +  ≤ 1,000,000
Demand for tomato paste   +  ≤ 2,000,000
Demand for the products is expressed in pounds.
1.2 Tomatoes availability constraints
Grade “A” tomatoes represent 20% of the whole crop. So there’s a limit in utilization of grade “A” tomatoes as well as a limit in utilization of grade “B” tomatoes. In fact, there’s an availability of 3,000,000*20% =
Red Brand Canners
6
600,000 lbs. of grade “A” tomatoes and, therefore, an availability of 3,000,00*80% = 2,400,000 grade “B” tomatoes. So:
Constraint Formula
Availability grade “A” tomatoes  + 
 +   ≤ 600,000
Availability grade “B” tomatoes  +  +  ≤ 2,400,000
1.3 Quality constraints
The average quality for the whole tomatoes must be at least
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