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Romans Food Market, located in Saratoga, New York, carries a variety of specialty foods from around the world. Two of the store's leading products use the Romans Food Market name: Romans Regular Coffee and Romans DeCaf Coffee. These coffees are blends of Brazilian Natural and Colombian Mild coffee beans, which are purchased from a distributor located in New York City. Because Romans purchases large quantities, the coffee beans may be purchased on an as-needed basis for a price 10% higher than the market price the distributor pays for the beans. The current market price is $0.47 per pound for Brazilian Natural and $0.62 per pound for Colombian Mild. The compositions of each coffee blend are as follows. Bean Max Brazilian Natural s.t. Colombian Mild Regular % constraint Romans sells the Regular blend for $3.60 per pound and the DeCaf blend for $4.40 per pound. Romans would like to place an order for the Brazilian and Colombian coffee beans that will enable the production. of 800 pounds of Romans Regular coffee and 300 pounds of Romans DeCaf coffee. The production cost is $0.80 per pound for the Regular blend. Because of the extra steps required to produce DeCaf, the production cost for the DeCaf blend is $1.05 per pound. Packaging costs for both products are $0.25 per pound. DeCaf % constraint (a) Formulate a linear programming model that can be used to determine the pounds of Brazilian Natural and Colombian Mild that will maximize the total contribution to profit. (Let BR= pounds of Brazilian beans purchased to produce Regular, BD = pounds of Brazilian beans purchased to produce DeCaf, CR= pounds of Colombian beans purchased to produce Regular, and CD= pounds of Colombian beans purchased to produce DeCaf.) Pounds of Regular Blend Regular DeCaf 75% Pounds of DeCaf 25% 40% 60% (b) What is the optimal solution? (BR, BD, CR, CD) = 1357 0000 x (c) What is the contribution to profit (in $)? (Round your answer to two decimal places.) $

Romans Food Market, located in Saratoga, New York, carries a variety of specialty foods from around the world. Two of the store's leading products use the Romans Food Market name: Romans Regular Coffee and Romans DeCaf Coffee. These coffees are blends of Brazilian Natural and Colombian Mild coffee beans, which are purchased from a distributor located in New York City. Because Romans purchases large quantities, the coffee beans may be purchased on an as-needed basis for a price 10% higher than the market price the distributor pays for the beans. The current market price is $0.47 per pound for Brazilian Natural and $0.62 per pound for Colombian Mild. The compositions of each coffee blend are as follows. Bean Max Brazilian Natural s.t. Colombian Mild Regular % constraint Romans sells the Regular blend for $3.60 per pound and the DeCaf blend for $4.40 per pound. Romans would like to place an order for the Brazilian and Colombian coffee beans that will enable the production. of 800 pounds of Romans Regular coffee and 300 pounds of Romans DeCaf coffee. The production cost is $0.80 per pound for the Regular blend. Because of the extra steps required to produce DeCaf, the production cost for the DeCaf blend is $1.05 per pound. Packaging costs for both products are $0.25 per pound. DeCaf % constraint (a) Formulate a linear programming model that can be used to determine the pounds of Brazilian Natural and Colombian Mild that will maximize the total contribution to profit. (Let BR= pounds of Brazilian beans purchased to produce Regular, BD = pounds of Brazilian beans purchased to produce DeCaf, CR= pounds of Colombian beans purchased to produce Regular, and CD= pounds of Colombian beans purchased to produce DeCaf.) Pounds of Regular Blend Regular DeCaf 75% Pounds of DeCaf 25% 40% 60% (b) What is the optimal solution? (BR, BD, CR, CD) = 1357 0000 x (c) What is the contribution to profit (in $)? (Round your answer to two decimal places.) $

Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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Romans Food Market, located in Saratoga, New York, carries a variety of specialty foods from around the world. Two of the store's leading products use the Romans Food Market name: Romans Regular Coffee and Romans DeCaf Coffee. These coffees are blends of Brazilian Natural and Colombian Mild coffee beans, which are purchased from a distributor located in New York City. Because Romans purchases large quantities, the coffee beans may be purchased on an as-needed basis for a price 10% higher than the market price the distributor pays for the beans. The current market price is $0.47 per pound for Brazilian Natural and $0.62 per pound for Colombian Mild. The compositions of each coffee blend are as follows. Bean Max Brazilian Natural s.t. Colombian Mild Regular % constraint DeCaf % constraint Pounds of Regular Blend Regular Romans sells the Regular blend for $3.60 per pound and the DeCaf blend for $4.40 per pound. Romans would like to place an order for the Brazilian and Colombian coffee beans that will enable the production of 800 pounds of Romans Regular coffee and 300 pounds of Romans DeCaf coffee. The production cost is $0.80 per pound for the Regular blend. Because of the extra steps required to produce DeCaf, the production cost for the DeCaf blend is $1.05 per pound. Packaging costs for both products are $0.25 per pound. Pounds of DeCaf 75% (a) Formulate a linear programming model that can be used to determine the pounds of Brazilian Natural and Colombian Mild that will maximize the total contribution to profit. (Let BR = pounds of Brazilian beans purchased to produce Regular, BD = pounds of Brazilian beans purchased to produce DeCaf, CR = pounds of Colombian beans purchased to produce Regular, and CD pounds of Colombian beans purchased to produce DeCaf.) 25% DeCaf (b) What is the optimal solution? (BR, BD, CR, CD) = 1357 40% 60% (c) What is the contribution to profit (in $)? (Round your answer to two decimal places.) $
Transcribed Image Text:Romans Food Market, located in Saratoga, New York, carries a variety of specialty foods from around the world. Two of the store's leading products use the Romans Food Market name: Romans Regular Coffee and Romans DeCaf Coffee. These coffees are blends of Brazilian Natural and Colombian Mild coffee beans, which are purchased from a distributor located in New York City. Because Romans purchases large quantities, the coffee beans may be purchased on an as-needed basis for a price 10% higher than the market price the distributor pays for the beans. The current market price is $0.47 per pound for Brazilian Natural and $0.62 per pound for Colombian Mild. The compositions of each coffee blend are as follows. Bean Max Brazilian Natural s.t. Colombian Mild Regular % constraint DeCaf % constraint Pounds of Regular Blend Regular Romans sells the Regular blend for $3.60 per pound and the DeCaf blend for $4.40 per pound. Romans would like to place an order for the Brazilian and Colombian coffee beans that will enable the production of 800 pounds of Romans Regular coffee and 300 pounds of Romans DeCaf coffee. The production cost is $0.80 per pound for the Regular blend. Because of the extra steps required to produce DeCaf, the production cost for the DeCaf blend is $1.05 per pound. Packaging costs for both products are $0.25 per pound. Pounds of DeCaf 75% (a) Formulate a linear programming model that can be used to determine the pounds of Brazilian Natural and Colombian Mild that will maximize the total contribution to profit. (Let BR = pounds of Brazilian beans purchased to produce Regular, BD = pounds of Brazilian beans purchased to produce DeCaf, CR = pounds of Colombian beans purchased to produce Regular, and CD pounds of Colombian beans purchased to produce DeCaf.) 25% DeCaf (b) What is the optimal solution? (BR, BD, CR, CD) = 1357 40% 60% (c) What is the contribution to profit (in $)? (Round your answer to two decimal places.) $
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