Holiday Fruit Company buys oranges and processes them into gift fruit baskets

Holiday fruit company buys oranges and processes them

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Holiday Fruit Company buys oranges and processes them into gift fruit baskets and fresh juice. The company grades the fruit it buys on a scale from 1 (lowest quality) to 5 (highest quality). The following table summarizes Holiday’s current inventory of fruit. Grade Supply (1,000’s of pounds) 1 90 2 225 3 300 4 100 5 75 Each pound of oranges devoted to fruit baskets results in a marginal profit of $2.50, whereas each pound devoted to fresh juice results in a marginal profit of $1.75. Holiday wants the fruit in its baskets to have an average quality grade of at least 3.75 and its fresh juice to have an average quality grade of at least 2.50 Additionally, because it is easier to mask quality in juice, the ratio of low quality oranges (rated 1, 2, or 3) to high quality oranges (rated 4 or 5) should meet or exceed 10:1. Conversely, the ratio of low quality to high quality oranges in baskets may not exceed 3:1. Implement a spreadsheet model to solve this problem using RSP. Your screen snapshot should again show the optimalsolution. Label your decision variables clearly. 3. Beginning with the previous problem (Chapter 3: #27) consider the following change. Holiday Fruit Company would like to consider addinga line of “economy” baskets. Charge less, but use lower quality ingredients. The profit contribution on “economy” baskets is $2.00 but the ratio of low quality to high quality oranges may not exceed 6:1 rather than 3:1. There is no maximum or minimum average quality in these “economy” baskets.
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  • Fall '09
  • HENDERSCOTT
  • memory chips, Printed circuit board, Chocolate chip cookie, Cookie, Melon

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