Question: Develop an optimization model of the cannery s problem of utilizing the available tomatoes to produce the three products. Clearly identify decision variables and their
Develop an optimization model of the cannerys problem of utilizing the available
tomatoes to produce the three products. Clearly identify decision variables and their
units of measurement: pounds or cases. Make sure to express the quality requirements
as linear functions of the decision variables. As always, ignore the fixed overhead
costs.
a The total profit can be computed in two ways: treating the cost of tomatoes fruit
as variable cost per pound of tomatoes used, and fixed cost of purchasing all of
the million pounds of tomatoes. Which approach is appropriate, and when? Briefly
comment on the accounting controversy regarding other ways of allocating the cost of
tomatoes, but ignore it in your optimization model.
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