Question: Cranberries can be harvested using either a wet method or dry method. Dry-harvested cranberries can be sold at a premium, while wet harvested cranberries are
Cranberries can be harvested using either a "wet" method or "dry" method. Dry-harvested cranberries can be sold at a premium, while wet harvested cranberries are used mainly for cranberry juice and bring in less revenue. Fresh Made Cranberry Cooperative must decide how much of its cranberry crop should be harvested wet and how much should be dry harvested. Fresh Made has 4000 barrels of cranberries that can be harvested using either the wet or dry method. Dry cranberries are sold for $33.50 per barrel and wet cranberries are sold for $19.50 per barrel. Once harvested, cranberries must go through dechaffing and cleaning operations. The dechaffing and the cleaning operations can each be run 24 hours per day for the 6-week seasons (for a total of 1,010 hours). Each barrel of dry cranberries requires 0.21 hours in the dechaffing operation and 0.34 hours in the cleaning operation. Wet cranberries require 0.07 hours in the dechaffing operation and 0.10 hours in the cleaning operation. Wet cranberries must also go through a dry process. The drying process can also be operated 24 hours per day for the 6-week season, and each barrel of wet cranberries must be dried for 0.26 hours. a. Develop a linear program that Fresh Made can use to determine the optimal amount of cranberries to dry harvest and wet harvest. If required, round your answers to three decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. Let W = barrels of cranberries harvested using wet method Let D = barrels of cranberries harvested using dry method b. Solve a linear program in part (a). How many barrels should be dry harvested? How many barrels should be wet harvested? Round your answers to two decimal places. Round your answer for Total Cost to the nearest cent. Optimal solution : W- ?? D-?? Total cost = ?? c. Suppose that Fresh Made can increase its dechaffing capacity by using an outside firm for this operation. Fresh Made will still use its own dechaffing operation as much as possible, but it can purchase additional capacity from this outside firm for $500 per hour. Should Fresh Made purchase additional dechaffing capacity? If required, round your answer to three decimal places. Fresh Made____ (should/should not)____ purchase additional dechaffing capacity. Why or why not? The dechaffing (Constratint 2) ____(is/ is not)___ a binding constraint because only _____ of the 1,010 available hours are being used. d. Interpret the dual value for the constraint corresponding to the cleaning operation. How would you explain the meaning of this dual value to management? If required, round your answers to two decimal places. Assuming everything else remains unchanged, each additional hour of cleaning capacity (Constraint 3) added (subtracted) from the 1,010 available hours increases (decreases) revenues $______ based on the Dual Values shown here. This is true for any cleaning capacity value between _______ and __________. Expert Answer Anonymous answered this 29,100 answers (a) max.Z = Total Revenue = 19.5W + 33.5D Subject to, 1W + 1D 4000 0.07W + 0.21D 1010 0.10W + 0.34D 1010 0.26W + 0D 1010 W, D 0 (b) Set Objective: Total Revenue.--- 1458.33 2541.67 To: OMax Min yalue Of: ; 3 Price 4 Subject to, 5 Avaliability 1 6Decaffing C (c) The shadow price of decaffing is zero, so there is still some slack existing with decaffing hours. So, there is no need to buy extra capacity. Fresh Made should not purchase additional dechaffing capacity. The dechaffing (Constraint 2) is not a binding constraint because only 635.83 of the 1,010 available hours are being used. (d) Variable Cells Final Value 1458.333333 2541.666667 Reduced Objective Allowable Allowable Decrease Coefficient Increase 0 0 Ce Assuming everything else remains unchanged, each additional hour of cleaning capacity (Constraint 3) added (subtracted) from the 1,010 available hours increases (decreases) revenues $58.33 based on the Dual Values shown here. This is true for any cleaning capacity value between 427.69 and 1360. Based on this question and answer, e. Conduct some additional analysis of your choice. The additional analysis should be clearly marked (a separate section for the problem). f. Write an executive summary of your work (about one-third to one-half of a page). Place the executive summary before the rest of the report for this problem.
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