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RED BRAND CANNERS

GROUP D1

Situation Background
Mr. Mitchell Gordon , VP called a meeting to discuss the amount of
tomato products to pack that season
Hierarchy
1.
2.
3.

William Cooper-Controller
Charles Myers- Sales Manager
Dan Trucker- Production Manger

Objective is to maximize the profit

Case Facts:
Cost is 6 cents per pound agreeing to purchase the growers production
Available Quantity is 3,000,000
Required Quality for
1. Canned Whole Tomatoes - 8
2. Juice-6
3. Paste-5

Profit is $1.48 for canned tomatoes, $1.32 for Tomato Juice and $1.85 for
Tomato Paste
Demand Forecast in Market- Refer Exhibit 1

Solution Equation and Constraints


Quantity Constraint
Ca + Cb + Ja +Jb + Pa +Pb <= 3,000,000
Availability:
Ca + Ja + Pa <= 6,00,000
Cb+ Jb + Pb <= 24,00,000
Demand: (Exhibit 1)
Ca + Cb <= 8,00,000*18
Ja + Jb <= 50,000*20
Pa + Pb <= 80,000*25

Solution Equation and Constraints


Quality Constraints
9 Ca + 5 Cb => 8(Ca +Cb)
9 Ja + 5 Jb => 6(Ja +Jb)
Objective Function:
Max Z = 1.48/18 (Ca +Cb) + 1.32/20 (Ja +Jb) + 1.85/25 (Pa + Pb) 0.06
* 3,000,000
Where Ca, Cb, Ja, Jb, Pa, Pb=> 0