Question
27. Fresh Made company must decide how much of its cranberry crop should be harvested wet and how much should be dry harvested. Fresh Made
27. Fresh Made company must decide how much of its cranberry crop should be harvested wet and how much should be dry harvested. Fresh Made had 5000 barrels of cranberries that can be harvested using either the wet or dry method. Dry cranberries are sold for $32.50 per barrel and wet cranberries are sold for $17.50 per barrel. Both wet and dry cranberries must go through dechaffing and cleaning operations. The dechaffing and the cleaning operations can each be run 24 hours per day for a total of 1008 ours. Each barrel of dry cranberries requires 0.18 hours in the dechaffing operation and 0.32 hours in the cleaning operation. Wet cranberries require 0.04 hours in the dechaffing operation and 0.10 hours in the cleaning operation. Wet cranberries must also go through a drying process. The drying process can also be operated 24 hours per day ad each barrel of wet cranberries must be dried for 0.22 hours.
- develop a linear program.
- suppose that Fresh Made can increase its dechaffing capacity by using an outside firm for this operation. Fresh Made will still use its own dechaffing operation as much as possible, but it can purchase additional capacity from this outside firm for $500 per hours. Should Fresh Made purchase additional decahffing capacity? Why of why not.
interpret the shadow price for the constraint corresponding to the cleaning operation. How would you explain the meaning of this shadow price to management
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