Question

Problem 4-13 (Algorithmic)

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 11% 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:

	Blend
Bean	Regular	DeCaf
Brazilian Natural	75%	35%
Colombian Mild	25%	65%

Romans sells the Regular blend for $3.2 per pound and the DeCaf blend for $4.3 per pound. Romans would like to place an order for the Brazilian and Colombian coffee beans that will enable the production of 900 pounds of Romans Regular coffee and 500 pounds of Romans DeCaf coffee. The production cost is $0.89 per pound for the Regular blend. Because of the extra steps required to produce DeCaf, the production cost for the DeCaf blend is $1.09 per pound. Packaging costs for both products are $0.25 per pound. 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
	CD = pounds of Colombian beans purchased to produce DeCaf

If required, round your answers to four decimal places. For subtractive or negative numbers use a minus sign even if there is a plus sign before the blank. (Example: -300)

The complete linear program is

Max		+		+		+
s.t.
				+				=
						+		=
								=
						+		=
BR, BD, CR, CD ≥ 0

What is the optimal solution and what is the contribution to profit? If required, round your answer to the nearest whole number.

Optimal solution:

BR =

BD =

CR =

CD =

If required, round your answer to the nearest cent.

Value of the optimal solution = $  

Answer 1

ANSWER

LINEAR PROGRAM MODEL

OPTIMAL SOLUTION IS DETERMINED BY EXCEL SOLVER

OPTIMAL SOLUTION

BR =	675	pounds
BD =	175	pounds
CR =	225	pounds
CD =	325	pounds

Value of the optimal solution (Total profit) = $ 2,512.05

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