Hi

would you please help me on Chapter 9E part E. I'm having hard time undrstanding where those profit /lbs and total profit value came.

Management Science (4th Edition)

https://www.chegg.com/homework-help/Management-Science-4th-edition-chapter-9-problem-9E-solution-9781118582695

Thank you,

Eyerusalem

c

Hotal

Restaurant

Market

Cost Per Pound

Used

Max Weekly Ava

Robusta

20%

35%

10%

0.6

0

40000

Javan Arbica

40%

15%

35%

0.8

0

25000

Liberica

15%

20%

40%

0.55

0

20000

Brazilian Arabica

25%

30%

15%

0.7

0

45000

	Hotel	Restaurant	Market
Selling Price	1.25	1.5	1.4		Max Prodcution Cap
Min Products /week lbs	10,000	25,000	30,000		100000

coffee Blending and Sales. Hill-O-Beans Coffee Company blends four component beans into three final blends of coffee: one is sold to luxury hotels, another to restaurants, and the third to supermarkets for store label brands. The company has four reliable bean supplies: Robusta, Javan Arabica, Liberica, and Brazilian Arabica. The following table summarizes the very precise recipes for the final coffee blends, the cost and availability information for the four components, and the wholesale price per pound of the final blends. The percentages indicate the fraction of each component to be used in each blend.

Component Hotel		Restaurant Market			Cost per Pound	Max Weekly Availability (lbs)
Robusta Javan Arabica Liberica Brazilian Arabica	20% 25%		35% 15%	10% 35% 400/0 15%	$0.60 $0.80 $0.55 $0.70	40,000 25,000 20,000 45,000
Wholesale Price Per Pound $1.25			$1.50	$1.40

The processor's plant can handle no more than 100,000 pounds per week, but there is virtually unlimited demand for the final blends. However, the marketing department requires minimum production levels of 10,000, 25,000, and

30,000 pounds, respectively, for the hotel, restaurant, and market blends.

In order to maximize weekly profit, how many pounds of each component should be purchased?

What is the economic value of an additional pound's worth of plant capacity?

How much (per pound) should Hill-O-Beans be willing to pay for additional pounds of Liberica in order to raise total profit?

Construct a graph to show how the optimal profit varies with the minimum weekly production level of the hotel blend. e. Construct a graph to show how the optimal profit varies with the unit cost of Robusta beans.

The given table above missing some values.

	Hotal	Restaurant	Market	Cost Per Pound	Used	Max Weekly Ava
Robusta	20%	35%	10%	0.6	0	40000
Javan Arbica	40%	15%	35%	0.8	0	25000
Liberica	15%	20%	40%	0.55	0	20000
Brazilian Arabica	25%	30%	15%	0.7	0	45000