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The Green New Deal Burger Co is exploring new sources of meatless meat. To attract Keto/Paleo consumers, the company is using large amounts of soy
The Green New Deal Burger Co is exploring new sources of meatless meat. To attract Keto/Paleo consumers, the company is using large amounts of soy protein and a small amount of carbs in their burger patties. To achieve profitability, the key decision in their manufacturing process is thus where to source processed soy beans. Currently, the available soy suppliers are willing to supply soy in the following amounts and at the following price: Friendly Farms (FF): at most 200 lbs at $4/lbs. Misty Meadows (MM): at most 310 lbs at $3/lbs. Treasure Tree (TT): at most 420 lbs. at $2/b. Shipping costs in $ per lbs are: To: Plant DC-A Plant DC-B From: FF 3 3.5 MM 2 2.5 TT 6 4 Fridge capacity for meat storage and labor costs at the production plants are as follows: Plant DC-A Plant DC-B Capacity 460 lbs. 560 lbs. Labor cost $26/12 $21/11 Each patty is sold at $5 and requires 0.15 lbs. of processed soy. The company can sell at this price all they can produce a) What is the best mixture of the quantities supplied by the three suppliers to the two plants so that the company maximizes its profits? Is the company profitable? If possible, answer the following question using both (i) a re-formulation of the original problem, and (ii) solver sensitivity analysis. Do the answers match? Why? (why not?) b) The combative Keto/Paleo-community is demanding that the carb content in the patty be further reduced to less than 1%, which would require the amount of soy per patty to go up to 0.2 lbs. Assuming that prices are not allowed to increase, is the venture still profitable? The Green New Deal Burger Co is exploring new sources of meatless meat. To attract Keto/Paleo consumers, the company is using large amounts of soy protein and a small amount of carbs in their burger patties. To achieve profitability, the key decision in their manufacturing process is thus where to source processed soy beans. Currently, the available soy suppliers are willing to supply soy in the following amounts and at the following price: Friendly Farms (FF): at most 200 lbs at $4/lbs. Misty Meadows (MM): at most 310 lbs at $3/lbs. Treasure Tree (TT): at most 420 lbs. at $2/b. Shipping costs in $ per lbs are: To: Plant DC-A Plant DC-B From: FF 3 3.5 MM 2 2.5 TT 6 4 Fridge capacity for meat storage and labor costs at the production plants are as follows: Plant DC-A Plant DC-B Capacity 460 lbs. 560 lbs. Labor cost $26/12 $21/11 Each patty is sold at $5 and requires 0.15 lbs. of processed soy. The company can sell at this price all they can produce a) What is the best mixture of the quantities supplied by the three suppliers to the two plants so that the company maximizes its profits? Is the company profitable? If possible, answer the following question using both (i) a re-formulation of the original problem, and (ii) solver sensitivity analysis. Do the answers match? Why? (why not?) b) The combative Keto/Paleo-community is demanding that the carb content in the patty be further reduced to less than 1%, which would require the amount of soy per patty to go up to 0.2 lbs. Assuming that prices are not allowed to increase, is the venture still profitable
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