Question: UB Food Products has three processing plants ( A , B and C ) , where different variables of potato products are produced. Recently, the
UB Food Products has three processing plants A B and C where different variables of potato products are produced. Recently, the company has experienced a growth in its product demand, so it wants to buy potatoes from new farms. The company is considering six new farms with the following projected harvest:
Table
Farm
Projected Annual Harvest
thousands of tons
The company currently has the following additional available production capacity tons at its three plants, which it wants to utilise:
Table
Plant A B C
Available Capacity
thousands of tons
The shipping cost per ton from the farms being considered for purchase to the plants are as follows:
Table
Farm Plant Shipping costs, ton
A B C
a Formulate a mathematical model that can be used to find farms that will meet available production capacity at a minimum cost. Solve it points
b With the increase in the price of potatoes, the management team plan to purchase farms instead of purchasing potatoes from them. The annual fixed cost of each farm is summarised in Table Build a model to help the manager to select the farms that will meet available production capacity at a minimum cost. Solve it points
Table
Farm
Fixed Annual Costs
s
c After reviewing the solution to part b the manager realised that additional requirements must be specified. If farm is purchased, then farm cannot be purchased but farm must be purchased. Revise your model to incorporate these additional requirements and solve for the optimal solution. points
d Comment discussion or analysis beyondbased on the solutions of ac points
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