Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Successful Project Management

Authors: Jack Gido, Jim Clements

4th Edition

9780324656152, 324656130, 978-0324656138

More Books

Students also viewed these General Management questions