question archive The production planner for Fine Coffees, inc

The production planner for Fine Coffees, inc

Subject:Operations ManagementPrice: Bought3

The production planner for Fine Coffees, inc. produces two coffee blends: American (A) and British (B). Two of his resources are constrained: Colombia beans, of which he can get at most 300 pounds (4,800 ounces) per week: and Dominican beans, of which he can get at most 200 pounds (3,200 ounces) per week. Each pound of American blend coffee requires 12 ounces of Colombian beans and 4 ounces of Dominican beans: while a pound of British blend coffee uses 8 ounces of each type of bean. Profits for the American blend are $2.00 per pound, and profits for the British blend are $1.00 per pound. Answer the following questions: (A) What are the constraints (in ounces) of the problem? (10 marks) (B) What is the optimum profit value? Why this point is optimum? Prove it with your calculations. (30 marks) (C) Identify slack and/or surplus, if applicable? Explain the meaning of that in the context of this problem. (20 marks) (D) Identify binding, nonbinding, and redundant constraints in this problem. Explain the meaning of each. (15 marks)

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