MAICA FETALINO BSA 2-A

LEARNING ACTIVITIES

PROBLEMS

Hilltop Coffee manufactures a coffee product by blending three types of coffee beans.
The cost per pound and the available pounds of each bean are as follows:

BEAN COST PER POUND AVAILABLE POUNDS

1 $ 0.50 500
2 $ 0.70 600
3 $ 0.45 400

Consumer tests with coffee products were used to provide ratings on a scale of 0-100,
with higher ratings indicating higher quality. Product quality standards for the blended
coffee require a consumer rating for aroma to be at least 75 and a consumer rating for
taste to be at least 80. The individual ratings of the aroma and taste for coffee made
from 100% of each bean are as follows:

BEAN AROMA RATING TASTE RATING

1 75 86
2 85 88
3 60 75
Let A= Pound of Coffee Bean 1
B= Pound of Coffee Bean 2
C= Pound of Coffee Bean 3
D- Minimum Cost

Objective Function: Minimize the cost D= 0.50A + 0.70B + 0.45C

Constraints:
Aroma rating- 75A + 85B + 60C ≥75
1000
Taste rating- 86A + 88B + 75C ≥ 80
1000
Pound requirement- 500A + 600B + 400C = 1000
A ≤ 500
B ≤ 600 Availability of pounds of bean
C ≤ 400
Non- negativity restriction- A, B, C ≥ 0
Assume that the aroma and taste attributes of the coffee blend will be weighted average
of the attributes of the beans used in the blend.

a. What is the minimum-cost blend that will meet the quality standards and
provide 1000 pounds of the blended coffee product?
 Optimal Solution: A= 500, B=300, C=200
 $ 550

b. What is the cost per pound for the coffee blend?

 $ 0.55

Computation:
$ 550/ 1000 pounds = $ 0.55 per pound for the coffee blend.

c. Determine the aroma and taste ratings for the coffee blend.
 Aroma Rating = 75
 Taste Rating = 84.4

Aroma rating- 75A + 85B + 60C ≥ 75

1000
 Taste rating- 86A + 88B + 75C ≥ 80
1000

d. If additional coffee were to be produced, what would be the expected cost per
pound?
 In this problem, the dual value is $ 0.60. So, extra coffee can be produced at a
cost of $ 0.60 per pound. Expected cost per pound= $ 0.60