Problem 9-13 (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

  1. Problem 9-13 (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 12% higher than the market price the distributor pays for the beans. The current market price is $0.45 per pound for Brazilian Natural and $0.67 per pound for Colombian Mild. The compositions of each coffee blend are as follows:

Blend

Bean

Regular

DeCaf

Brazilian Natural

60%

40%

Colombian Mild

40%

60%

Romans sells the Regular blend for $3.3 per pound and the DeCaf blend for $4.5 per pound. Romans would like to place an order for the Brazilian and Colombian coffee beans that will enable the production of 1100 pounds of Romans Regular coffee and 525 pounds of Romans DeCaf coffee. The production cost is $0.84 per pound for the Regular blend. Because of the extra steps required to produce DeCaf, the production cost for the DeCaf blend is $1.08 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 three decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300)

The complete linear program is

Max

fill in the blank 1BR

fill in the blank 2BD

fill in the blank 3CR

fill in the blank 4CD

s.t.

fill in the blank 5BR

fill in the blank 6CR

fill in the blank 7

fill in the blank 8BD

fill in the blank 9CD

fill in the blank 10

fill in the blank 11BR

fill in the blank 12CR

fill in the blank 13

fill in the blank 14BD

fill in the blank 15CD

fill in the blank 16

BR, BD, CR, CD ≥ 0

What is the contribution to profit?

Optimal solution:

BR = fill in the blank 17

BD = fill in the blank 18

CR = fill in the blank 19

CD = fill in the blank 20

If required, round your answer to two decimal places.

Value of the optimal solution = $  fill in the blank 21