Question

In: Statistics and Probability

PureCoffee PureCoffee imports high quality coffee beans from Africa and South America. They roast the beans...

PureCoffee

PureCoffee imports high quality coffee beans from Africa and South America. They roast the beans in a innovative process slowly and gently to create a unique taste of coffee. Pure Coffee serves three markets (M1, M2, and M3) in Europe. Market demand for the next week is given in the following table.

Market

Demand (tons per week)

Market 1 (M1)

500

Market 2 (M2)

500

Market 3 (M3)

1000

To serve Europe they have two roasting plants available - one in the North of Europe (N) and one in the South of Europe (S).

Roasting Plant

Capacity (tons per week)

North (N)

1000

South (S)

1000

Currently they are using two distribution centers in Europe to connect the roasting plants with markets. They ship the roasted beans from the production sites to the distribution centers and distribute from there to three different markets.
The cost to transport a ton of roasted beans from a roasting plant to a dibstrution center and from the distribution center to the customers depends on the distances between the different locations. These costs are given in the two tables below:

Origin: Roasting Plant

Destination: Distribution Center

Transportation Cost (Euros/ton)

North (N)

Distribution Center A

50

Distribution Center B

47

South (S)

Distribution Center A

51

Distribution Center B

49

Origin: Distribution Center

Destination: Market

Transportation Cost (Euros/ton)

Market 1

79

Distribution Center A

Market 2

54

Market 3

40

Market 1

70

Distribution Center B

Market 2

62

Market 3

48


  1. PureCoffee wants to minimize the total weekly cost. They ask you to optimize the roasted beans flow from the processing facilities to their customers.

In the optimal solution, what is the minimum total weekly cost of moving roasted beans from roasting plants to customers? Enter your answer in Euros without a currency symbol.

  1. How many tons of roasted beans should PureCoffee ship through Distribution Center B per week?

Solutions

Expert Solution

Solution:

FORMULA:

Enter Solver Parameters as follows:

Click Solve to generate the solution. After that, values appear automatically in Quantity column (D2:D11):

orchestra answered 1 year ago
Next > < Previous

Related Solutions

Alex and Adam are coffee roasters. They can roast up to 12,000 pounds of coffee beans...
Alex and Adam are coffee roasters. They can roast up to 12,000 pounds of coffee beans monthly at their flagship store in Soho. However, they can only sell 3,000 pounds of coffee beans in the Soho store (flagship). Thus, Alex and Adam decided to open two additional retail stores where the remaining beans will be sold. In each of the two new stores they can only sell 4,500 pounds of coffee beans monthly. The fix costs of the flagship store...
Rearden Metal imports ore from South America. Rearden Metal is worried that the South American mines...
Rearden Metal imports ore from South America. Rearden Metal is worried that the South American mines may enter into a long-term contract with the Chinese to sell all of their ore output to China, hence cutting off Rearden Metal’s supply. In the event of such a contract with the Chinese, Rearden Metal will face much higher costs for its raw materials causing its operating profits to decline substantially and its marginal tax rate to fall from its current level of...
Information for Question: The ExpressEspresso Company roasts and sells high quality certified sustainable coffee beans. The...
Information for Question: The ExpressEspresso Company roasts and sells high quality certified sustainable coffee beans. The final one pound bags of roasted whole coffee beans has two direct materials – coffee beans and packaging. ExpressEspresso is preparing budgets for the 4th quarter ending December 31, 2019. For each requirement below prepare budgets by month for October, November, and December, and a total budget for the quarter. The previous year’s sales for the corresponding period were: October 50,000 bags November 55,000...
(ii) Assume South Africa imports fish from Nigeria and Ethiopia at the free trade prices of...
(ii) Assume South Africa imports fish from Nigeria and Ethiopia at the free trade prices of R30 and R20 per ton of wool respectively. In autarky, South Africa’s domestic price of fish is R70 and 40 tons of fish are produced and consumed per annum. Use this information, with the aid of a diagram to explain the concept of trade diversion. (9) NB:Your explanation must touch on the pre tariff, 100 percent tariff and the formation of customs union conditions...
I have sequenced roughly 24 genomes from two different continents (Africa and South America), specifically for...
I have sequenced roughly 24 genomes from two different continents (Africa and South America), specifically for the envelope gene of yellow fever virus. I used software to generate the dN and dS ratio for each continent Africa: (dS= 0.2065, dN= 0.0031.) dN/dS ratio= 0.0150 South America: (dS=0.5541, dN= 0.0112.) dN/dS ratio= 0.0202 Im unsure how to interpret these ratio's, and how the difference in the two suggests any differences in the type of selection for the enveloped protein in each...
South Africa is a country with high unemployment rate. Some researchers have suggested that the South...
South Africa is a country with high unemployment rate. Some researchers have suggested that the South African government should adopt expert-led growth policies to address this problem given that increasing exports has the potential to increase productivity. Should the South African government increase its economic openness without government regulation of any kind? Please help me there. There is an answer to this question in this app. But I cant view it
Coffee beans from around the world are used to make coffee. Do coffee tasters prefer coffee...
Coffee beans from around the world are used to make coffee. Do coffee tasters prefer coffee beans from particular countries? To investigate this question, a researcher collected coffee aroma ratings based on Arabica coffee beans from two countries, Brazil and Costa Rica. The coffee aroma ratings are summarized in the table below. Each sample contains 10 coffee bean ratings. n Sample Mean Sample Standard Deviation Costa Rica 10 7.74 0.26 Brazil 10 7.54 0.25 We will assume that the aroma...
Coffee Bean Inc. (CBI) processes and distributes a variety of coffee. CBI buys coffee beans from...
Coffee Bean Inc. (CBI) processes and distributes a variety of coffee. CBI buys coffee beans from around the world and roasts, blends, and packages them for resale. Currently, the firm offers 15 coffees to gourmet shops in 1-pound bags. The major cost is direct materials; however, a substantial amount of factory overhead is incurred in the predominantly automated roasting and packing process. The company uses relatively little direct labor. Some of the coffees are very popular and sell in large...
Coffee Bean Inc. (CBI) processes and distributes a variety of coffee. CBI buys coffee beans from...
Coffee Bean Inc. (CBI) processes and distributes a variety of coffee. CBI buys coffee beans from around the world and roasts, blends, and packages them for resale. Currently, the firm offers 15 coffees to gourmet shops in 1-pound bags. The major cost is direct materials; however, a substantial amount of factory overhead is incurred in the predominantly automated roasting and packing process. The company uses relatively little direct labor. Some of the coffees are very popular and sell in large...
Coffee Bean Inc. (CBI) processes and distributes a variety of coffee. CBI buys coffee beans from...
Coffee Bean Inc. (CBI) processes and distributes a variety of coffee. CBI buys coffee beans from around the world and roasts, blends, and packages them for resale. Currently, the firm offers 15 coffees to gourmet shops in 1-pound bags. The major cost is direct materials; however, a substantial amount of factory overhead is incurred in the predominantly automated roasting and packing process. The company uses relatively little direct labor. Some of the coffees are very popular and sell in large...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT