{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter3-Question10

Chapter3-Question10 - 56 10 Iessica Lyell is the new owner...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 56 10. Iessica Lyell is the new owner of a Coffee Country Roasters. They roast and blend coffee to sell on the internet. Their best sellers are “Best Blend” and “Economy Blend” coffee. Both are blended from three basic grades of coffee: Best blend: 50% grade A, 20% grade B, and 30% grade C Economy: 20% grade A, 50% grade B, and 30% grade C The market prices are $790/ton for Best and $700/ton for Economy. The firm is given the option of buying up to 100 tons of grade A at $800/ton, 100 tons of grade B at $600/ton, and 75 tons of grade C at $400/ton. The profit on the Best Blend is $150 per ton and the profit on the Economy Blend is $120 per ton. Jessica would like to maximize her profit. a. Formulate this problem as a linear program. b. Solve this problem using Excel Solver. (Turn in a copy of your spreadsheet and the formulas used in it.) Using the sensitivity report from Solver, answer parts c—e. Do not resolve the prob— lem to answer these questions. Treat each question separate from the others. c. The profit on Economy Blend coffee has dropped by $10 due to a bad economy. What impact will this have on our production plan and total profit? (1. The bean broker just called to tell you that due to some flooding only 80 tons of grade B beans are available. How will this affect your production plan and profit? 6. After you signed the contract for the purchase of beans according to your LP, another broker sent you an e—mail offering 12 tons of grade C coffee beans for a total of $3,000. You cannot buy less than 12 tons for this deal. Will you take this deal? Will this affect your production plan and profit? YES / NO flflfifififififlflflhfiflllllfilllflflI-Ifl-Iflli ...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern