RED BRAND CANNERS

Total number of tomatoes, T = 3,000,000

Grade A tomatoes, A = 20% of 3,000,000 = 600,000
Grade B tomatoes, B = 80% of 3,000,000 =2,400,000
Cost Price, cp= $0.06

Calculating the demand of Tomatoes in the form of various products

1. Whole tomatoes = X = 800,000 cases
Each case of whole tomatoes = 18 pounds
Total pounds of whole tomatoes demanded = 18 x 800,000 =
1,440,000 pounds
2. Tomato juice = Y = 50,000 cases
Each case of tomato juice = 20 pounds
Total pounds of tomato juice demanded = 20 x 50,000 = 1,000,000
pounds
3. Tomato paste = Z = 80,000 cases
Each case of tomato paste = 25 pounds
Total pounds of tomato paste demanded = 25 x 80,000 = 2,000,000
pounds
Composition of Various Tomato products in terms of type of
tomatoes
1. Whole tomatoes = X1 and X2 where A and B signify the respective
grades
The quality of whole tomatoes can be given by equation
9(X1) + 5(X2) = 8(X1+X2)
where 9,5 and 8 show the rating of the tomatoes
=> X1 3X2 = 0 & X1 + X2 1440000
2. Tomato Juice = Y1 and Y2
Tomato Juice production as per demand = 1,000,000 pounds
The quality of Tomato juice can be given by the equation
9(Y1) + 5(Y2) = 6(Y1 + Y2)
=> 3Y1 Y2 = 0 & Y1 + Y2 1,000,000
3. Tomato paste = Z1 and Z2

Tomato paste production as per demand = 2,000,000 pounds

=> Z1 + Z2 2,000,000
There are no quality constraints
Contribution without taking tomatoes into account
1. Whole tomatoes = $4 - $2.52 = $1.48/18 = P1
2. Tomato Juice = $4.5 - $3.18 = $1.32/20 = P2
3. Tomato Z1ste = $4.8 - $2.95 = $1.85/25 = P3

CASE 1:
Objective Function:
P1(X1 + X2) + P2(Y1 +Y2) + P3(Z1+Z2) 180,000

Constraints:
X1

X2

Y1

Y2

Z1

Z2

Constraints
1

<=
1

1
-3

Answer Report:
Target Cell (Max)
Name

Original
Value

Final
Value

<=
1
1

Cell

-1

1 <=
<=
1 <=
>=
>=
1 >=

144000
00
100000
0
200000
0
600000
240000
0
0
0
0

$E$
23

Profit X1

225200

Adjustable Cells
Cell
$E$
5
$F$
5
$G$
5
$H$
5
$I$5
$J$5

Name
Quantity
X1
Quantity
X2
Quantity
Y1
Quantity
Y2
Quantity
Z1
Quantity
Z2

Original
Value

Final
Value

525000

175000

75000

225000

2000000

Constraints
Cell
$K$
16
$K$
17
$K$
10
$K$
11
$K$
12
$K$
13
$K$
14
$K$
15

Name

Cell
Value

Used

Used

2000000

Used

700000

Used

300000

Used

2000000

Used

600000

Used

2400000

Used

Formula
$K$16>=$
M$16
$K$17>=$
M$17
$K$10<=$
M$10
$K$11<=$
M$11
$K$12<=$
M$12
$K$13<=$
M$13
$K$14<=$
M$14
$K$15>=$
M$15

Status

Slack

Binding
Not
Binding
Not
Binding
Not
Binding

0
20000
00
13700
000
70000
0

Binding

Binding

Binding

Binding

Sensitivity Report:
Adjustable Cells
Cell

Name

Final
Valu

Redu
ced
Cost

Object
ive
Coeffic

AlloX1bl
e
Increas

AlloX1bl
e
Decreas

e
5250
00
1750
00
7500
0
2250
00

$E$
5
$F$
5
$G$
5
$H$
5

Quantity
X1
Quantity
X2
Quantity
Y1
Quantity
Y2
Quantity
$I$5 Z1
Quantity
$J$5 Z2

0
2000
000

ient

0.066

0.464
0.02133
3333
0.01422
2222

e
0.02133
3333
0.02133
3333
0.15466
6667
0.05155
5556

0.074

0.032

1E+30

0.074

1E+30

0.016

Shad
ow

Constr
aint
R.H.
Side

AlloX1bl
e
Increas
e

AlloX1bl
e
Decreas
e

1400000

200000

0
144000
00
100000
0
200000
0

2000000

1E+30
1370000
0

600000
240000
0

600000
466666.
6667
466666.
6667

0.082

0.082

0.066

0
0.032

e
0.15466
6667

Constraints

Cell
$K$
16
$K$
17
$K$
10
$K$
11
$K$
12
$K$
13
$K$
14
$K$
15

Name

Final
Valu
e

Used

Used

0
2000
000
7000
00
3000
00
2000
000
6000
00
2400
000

Used

Used
Used
Used
Used
Used

Price
0.008
0
0
0
0.016
0.09
0.058
0.008

1E+30
1E+30
200000

700000
466666.
6667
466666.
6667
200000
600000

CASE 2:
Objective Function:
P1(X1 + X2) + P2(Y1 +Y2) + P3(Z1+Z2) 180,000 6,800
Constraints:
X1

X2

Y1

Y2

Z1

Z2

<=
1

1
1
1

1
1
-3

<=
1 <=
<=

1
3

1 <=
>=
>=
1 >=

-1

144800
00
100000
0
200000
0
680000
240000
0
0
0
0

Answer Report:
Target Cell (Max)
Cell
$D$
24

Name

Original
Value

Profit X1

Final
Value
232400

Adjustable Cells
Cell
$D$
6
$E$
6
$F$
6
$G$
6
$H$
6
$I$6

Name
Quantity
X1
Quantity
X2
Quantity
Y1
Quantity
Y2
Quantity
Z1
Quantity
Z2

Original
Value

Final
Value

615000

205000

65000

195000

2000000

Constraints
Cell
$J$1
1
$J$1
2

Name
Used
Used

Cell
Value

Formula
$J$11<=$
820000 L$11
$J$12<=$
260000 L$12

Status
Not
Binding
Not
Binding

Slack
13660
000
74000
0

$J$1
3
$J$1
4
$J$1
5
$J$1
6
$J$1
7
$J$1
8

Used
Used
Used
Used
Used
Used

$J$13<=$
2000000 L$13
$J$14<=$
680000 L$14
$J$15<=$
2400000 L$15
1.16415E $J$16>=$
-10 L$16
$J$17>=$
0 L$17
$J$18>=$
2000000 L$18

Binding

Binding

Binding

Binding

Binding
Not
Binding

0
20000
00

Sensitivity Report:
Adjustable Cells
Cel
l
$D$
6
$E$
6
$F$
6
$G$
6
$H$
6
$I$
6

Name
Quantity
X1
Quantity
X2
Quantity
Y1
Quantity
Y2
Quantity
Z1
Quantity
Z2

Final

Redu
ced

Value

Cost

Objecti
ve
Coeffic
ient

0.066

0.464
0.021333
333
0.014222
222

AlloX1bl
e
Decreas
e
0.021333
333
0.021333
333
0.154666
667
0.051555
556

-0.032

0.074

0.032

1E+30

0.074

1E+30

0.016

Final

Shad
ow

AlloX1bl
e

Value

Price

Constr
aint
R.H.
Side
144800
00
100000
0
200000
0

AlloX1bl
e
Decreas
e
1366000
0

615000

0.082

205000

0.082

65000

0.066

195000

0
200000
0

AlloX1bl
e
Increase
0.154666
667

Constraints
Cel
l
$J$
11
$J$
12
$J$
13
$J$
14
$J$
15

Name
Used

820000

Used

260000
200000
0

Used
Used
Used

680000
240000
0

0.016
0.09
0.058

680000
240000
0

Increase
1E+30
1E+30
173333.3
333
520000
493333.3
333

740000
493333.3
333
546666.6
667
173333.3
333

$J$
16
$J$
17
$J$
18

1.16415
E-10

Used
Used

0
200000
0

Used

-0.008

546666.6
667

-0.008

1480000

520000
173333.3
333

2000000

1E+30

CONCLUSION
With earlier quantity of tomatoes profits are less i.e.
Total Cont.
Raw Material
Profit

22520
0
18000
0
45200

Now with additional 80000 pounds @ 8.5 cents/pound scenario is:

Total Cont.
Raw
Material
Profit

23240
0
18680
0
45600

So, its profitable to get extra 80000 pounds of tomatoes even at

higher rate.