rec1 - MASSACHUSETTS INSTITUTE OF TECHNOLOGY 15.053...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
M ASSACHUSETTS I NSTITUTE OF T ECHNOLOGY 15.053 – Optimization Methods in Management Science (Spring 2007) Recitation 1, February 8 th and February 9 th , 2007 Problem 1: Production Planning for PepsiCo The Wall Street Journal announced on February 1 st that at PepsiCo, the bottling company for Pepsi, profits were flat over the past few quarters. They call on you, a top OR student, to help change this stagnation. PepsiCo Company owns two different bottling plants that output different amounts of product for each hour run. If they run Plant 1 for a full hour, they will produce a certain number of cases of Pepsi, Sierra Mist, and Strawberry Fanta Light. PepsiCo must produce at least 12 tons of Pepsi, 8 tons of Sierra Mist, and 24 tons of Strawberry Fanta Light per day. It costs $20,000 per hour to run Plant 1, and costs and $16,000 per hour to run Plant 2. Each plant can be run for any amount between 0 and 8 hours per day. In one hour each plant produces the following tonnage: Pepsi Sierra Mist Diet Strawberry Fanta Plant 1 3 1 2 Plant 2 1 1 6 Part A: How can PepsiCo meet the requirements of the parent company at the lowest cost? Part B: Say there is an added constraint that Diet Strawberry Fanta can not make up more then 40% of the output, can we still model this as an LP?
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the 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