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ii. P4 Yield Loss (Zpts) Wollmer Distribution Company collects fruit from several small farms in the region, consolidates its collections, and then ships the fruit
ii. P4 Yield Loss (Zpts) Wollmer Distribution Company collects fruit from several small farms in the region, consolidates its collections, and then ships the fruit to a regional wholesale fruit market by truck. The purchase costs are in the following table. Fruit Purchase Costh'on Grapes $200 Peaches 600 Bananas 1400 Wollmer owns four trucks that can transport fruit to market. Each truck has its own capacity, and Wollmer has discovered that yield losses occur at different rates depending on which fruit is carried in which truck. The truck suspension system and the efciency of the refrigeration system seem to account for most of the losses. The following table shows the loss as a percentage and the truck capacity. Grapes Peaches Bananas Capacity (T) Truckl ' 12% 10% 4% 4o Truck2 ' 12% 14% 5% 50 Truck3 ' 16% 13% 6% 55 Truck4 ' 13% 17% 8% 75 Wollmer needs to sell at least 20 tons of each fruit in the market. The current market prices for the three fruits are as follows. Fruit Pn'ceiTon Grapes $500 Peaches 1000 Bananas 1'150 Set up a spreadsheet model and use solver to find the optimal purchase, shipping and selling plans. (15 pts) The company wants to increase the optimal prot without changing the solution variable mix. Should they consider expanding the truck capacity? Should they consider raising the sales for some of the fruits? (5pts) (Hint: Sensitivity Analysis - shadow price and binding variables)
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