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MOFEED is an agricultural company in Missouri that creates livestock feed. Their main selling product category is the compound feed, product varieties in this category
MOFEED is an agricultural company in Missouri that creates livestock feed. Their main selling product category is the compound feed, product varieties in this category include Grade A feed, sold at $243.00 per ton, and Grade B feed sold at $185.00 per ton. To produce a ton of Grade A feed, 0.6 tons of grains and 0.4 tons of molasses are required. To produce a ton of Grade B feed, 0.5 tons of grains and 0.5 tons of molasses are required. Moreover, the company needs to pay inspectors to habilitate them each quarter for each different grade of feed they produce, the inspector for Grade A feed charges $100 per inspection, while the inspector for Grade B charges $75. These inspections are done once per quarter, regardless of the amount of feed produced. For the next quarter, MOFEED has availability of 8,000 tons of molasses and 20,000 tons of gains to produce compound feed. Create an optimization problem that helps MOFEED determine the optimal production plan to maximize profits, given that the variable cost of producing each ton of Grade A feed is $168 and for Grade B is $125. Any molasses not used can be resold for $30 per ton, while any unused grains can be sold for $45 per ton. Excel Hint - The decision variables for this problem are: What is the profit yield of the optimal production plan
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