A Costa Rican company manufactures two types of coffee: regular and premium, which it sells at a
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Question:
A Costa Rican company manufactures two types of coffee: regular and premium, which it sells at a price of $ 120 and $ 200 (per 46 kg bag), respectively. These coffees are prepared from a mixture of national beans or imported beans. To maintain the qualities of the coffee blend, the following specification must be met: a minimum body of 75 for the total blend of regular coffee and a body of 93 minimum for the total blend of premium (both ratings on a scale of 1 100, assigned by coffee tasting experts). For this month, the maximum demand for both types of coffee exceeds the company's available coffee inventories, so it must be decided how much coffee (domestic and imported) to mix in order to maximize profits. The sales team defined a minimum demand to cover, contemplating satisfying at least the demand of the most important customers during this month of shortage. The characteristics of the available inventory and the demand data are summarized in the tables below:
The head of operations raised a mathematical model to determine the amounts of coffee to mix and with the solution, obtained the following sensitivity analysis. Using these results, answer:
* Consider the nomenclature: N = national. I = imported. R = regular. P = premium. A)How many binding constraints does the optimal solution have?
B)
* Consider the nomenclature: N = national. I = imported. R = regular. P = premium. What is the new value of the objective function if the sale price of the regular coffee bag decreases to $ 110? Select one: 1. $ 1394000 2. $ 1212000 3. It cannot be determined with the information given, as the solution would change.
C) * Consider the nomenclature: N = national. I = imported. R = regular. P = premium. Justify your decision using sensitivity analysis: if you could negotiate the purchase price of any of the bags ($ 70 and $ 90) for the mix 20% cheaper, which one would you choose for profit maximization? Select one: 1. The cost of national sacks. 2. The cost of imported bags. 3. The problem must be solved again to find out.
D)
* Consider the nomenclature: N = national. I = imported. R = regular. P = premium. What is the type of coffee that generates the highest profits for the company? Select one: 1. Regular. 2. Premium. 3. Both equally.
E)
* Consider the nomenclature: N = national. I = imported. R = regular. P = premium. If you could increase the demand for either type of coffee with advertising campaigns, which type would you focus on? Select one: 1. Regular 2. Premium 3. None
F)
Consider the nomenclature: N = national. I = imported. R = regular. P = premium. Based on the results presented, how many bags of coffee will be optimally processed in the analyzed month?
G)
* Consider the nomenclature: N = national. I = imported. R = regular. P = premium. Justify your decision using sensitivity analysis: if you could negotiate the purchase price of any of the bags ($ 70 and $ 90) for the mix 20% cheaper, which one would you choose for profit maximization? Select one: 1. The cost of national sacks. 2. The cost of imported bags. 3. The problem must be solved again to find out.
Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
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