CASE: RED BRAND CANNERS

Quantitative Techniques- II
Assignment: - 02
Section: - F
Group number: 7

Submitted To:
Prof. Bhuvanesh Pareek
Submitted By:
Akhilesh Kumar Singh
Gaurav Panda
Indroneel Das
Mugdha Kabra
Nikhil T
Swetapadma Mahapatra
Shibani Shankar Ray

Information Provided:

Total Tomato Crop: 3,000,000 pounds

Average price 6 cents per pound
Grade A: 20% of 3,000,000 = 600,000
Grade B: 80% of 3,000,000 = 2,400,000
Assumptions:
AW be the weight of Grade A tomatoes in Canned Whole Tomato
AJ be the weight of Grade A tomatoes in Tomato Juice
AP be the weight of Grade A tomatoes in Tomato Paste
BW be the weight of Grade B tomatoes in Canned Whole Tomato
BJ be the weight of Grade B tomatoes in Tomato Juice
BP be the weight of Grade B tomatoes in Tomato Paste

Optimization function:
Maximize Profit: 1.48 * (AW+BW)/18 + 1.32 * (AJ + BJ)/20 + 1.85* (AP+BP)/25 180000
Subjected to Constraints

Case I

AW + BW <= 14,400,000
AJ + BJ <= 1,000,000
AP + BP <=2,000,000
AW + AJ + AP <= 600,000
BW + BJ + BP <= 2,400,000
AW 3BW >= 0
3AJ BJ >= 0
BP >= 0

Solving the equation using Linear Programming:

OBJECTIVE CELL (MAX)

Cel
l
$G
$4

Na
me
Pro
fit

Origina
l Value
52582.2
2222

Final
Value
45355.5
5556

Cel
l
$A$
3
$B$
3
$C$
3
$D
$3
$E$
3
$F$
3

Na
me
AW

Origina
l Value
615000

Final
Integ
Value
er
525000 Contin

BW

205000

175000 Contin

AJ

65000

75000 Contin

BJ

195000

225000 Contin

AP

0 Contin

BP

200000
0

2000000 Contin

Cel
l
$H
$11
$H
$12
$H
$13

Na
me
>=

Cell
Formula
Value
0 $H$11>
=$I$11
0 $H$12>
=$I$12
200000 $H$13>
0 =$I$13

$H
$6

<=

700000 $H$6<=
$I$6

$H
$7

<=

300000 $H$7<=
$I$7

$H
$8
$H
$9
$H
$10

<=

200000 $H$8<=
0 $I$8
600000 $H$9<=
$I$9
240000 $H$10<
0 =$I$10

VARIABLE CELLS

CONSTRAINTS

Sensitivity Report:

>=
>=

<=
<=

Statu
s
Bindin
g
Bindin
g
Not
Bindin
g
Not
Bindin
g
Not
Bindin
g
Bindin
g
Bindin
g
Bindin
g

Slack
0
0
2000
000
1370
0000
7000
00
0
0
0

VARIABLE CELLS
Final

Objecti
ve
Coeffici
ent
0.08222
2222
0.08222
2222
0.066

0.066

0.03244
4444
0

0.074

Final

Shadow

Na
me
>=

Valu
e
0

Price

Constra
int
R.H.
Side
0

$H$
12

>=

$H$
13
$H$
6
$H$
7
$H$
8
$H$
9
$H$
10

>=

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

Cell
$A$
3
$B$
3
$C$
3
$D$
3
$E$
3
$F$
3

Na
me
AW
BW
AJ
BJ
AP

BP

Valu
e
5250
00
1750
00
7500
0
2250
00
0

2000
000

Reduce
d
Cost
0
0

0.074

Allowab Allowab
le
le
Increas Decreas
e
e
0.15437 0.02162
037
963
0.46311 0.02162
1111
963
0.02162 0.15437
963
037
0.01432 0.05145
0988
679
0.03244
1E+30
4444
1E+30

0.01611
1111

CONSTRAINTS

Cell
$H$
11

<=
<=
<=
<=
<=

0.00811
1111
0.00811
1111
0
0
0
0.01611
1111
0.09033
3333
0.05788
8889

Allowab Allowab
le
le
Increas Decreas
e
e
466666.
600000
6667

1400000

200000

2000000

1E+30

1440000
0
1000000

1E+30

1370000
0
700000

2000000

200000

600000

600000

2400000

466666.
6667

1E+30

466666.
6667
466666.
6667
200000

Limits Report

CE
LL
$G
$4

CE
LL
$A
$3
$B
$3
$C
$3
$D
$3
$E
$3
$F
$3

OBJECT
IVE
Name
Profit

Value
45355.5
5556

Variab
le
Name

Value

AW

525000

BW

175000

Low
er
Limi
t
5250
00
0

AJ

75000

BJ

225000

7500
0
0

AP

BP

2000000

Objecti
ve
Result

Uppe
r
Limit

Objectiv
e
Result

45355.5
5556
30966.6
6667
45355.5
5556
30505.5
5556
45355.5
5556
102644.
4444

5250
00
1750
00
7500
0
2250
00
0

45355.5
5556
45355.5
5556
45355.5
5556
45355.5
5556
45355.5
5556
45355.5
5556

2000
000

So the distribution of Tomatoes will be as follows:

Product
Whole
Tomato
Tomato
Juice
Tomato
Paste

Grade Grade
Pound per
A
B
Total
Case
Cases
52500
17500 70000
38888.8
0
0
0
18
9
22500 30000
75000
0
0
20
15000
20000 20000
0
00
00
25
80000

Case II
With additional Capacity of 80,000 pounds of grade A tomatoes purchased at $
0.085 per pound
Optimization Function:
Maximize Profit: 1.48 * (AW+BW)/18 + 1.32 * (AJ + BJ)/20 + 1.85* (AP+BP)/25
180000 + 8.5/100*3000000
Constraints will be adjusted as
AW + AJ + AP <= 680000
AW + BW <= 14480000

Solving the Linear Programming again we get

OBJECTIVE CELL (MAX)

Cell Na
Original
me
Value
$G$ Pro
38555.555
4
fit
56

VARIABLE
CELLS
Cell Na
me
$A$ AW
3
$B$ BW
3
$C$ AJ
3
$D$ BJ
3
$E$ AP
3
$F$ BP
3

CONSTRAI
NTS

Original
Value
525000

Final
Value
45782.22
222

Final
Intege
Value
r
615000 Contin

175000

205000 Contin

75000

65000 Contin

225000

195000 Contin

0 Contin

2000000

2000000 Contin

Cell
$H$
11
$H$
12
$H$
13
$H$
6
$H$
7
$H$
8
$H$
9
$H$
10

Na
me
>=
>=
>=
<=
<=
<=
<=
<=

Cell
Formula
Value
1.16415E- $H$11>=
10 $I$11
0 $H$12>=
$I$12
2000000 $H$13>=
$I$13
820000 $H$6<=$I
$6
260000 $H$7<=$I
$7
2000000 $H$8<=$I
$8
680000 $H$9<=$I
$9
2400000 $H$10<=
$I$10

Status

Slack

Binding

Binding

Not
Binding
Not
Binding
Not
Binding
Binding

20000
00
13660
000
74000
0
0

Binding

Binding

Sensitivity Analysis
VARIABLE
CELLS
Final
Cell
$A$
3
$B$
3
$C$
3
$D$
3
$E$
3
$F$
3

Value

Redu
ced
Cost

Objecti Allowabl Allowabl

ve
e
e
Coeffic Increase Decreas
ient
e
1 2.666666
0
667
1
8
0

Na
me
AW

615000

BW

205000

AJ

65000

BJ

195000

AP

2.666666
667
0.888888
889
1E+30

BP

200000
0

1E+30

CONSTRAI
NTS
Final
Cell
$H$
11

Na
me
>=

Value
1.16415
E-10

Shad
ow
Price
0

Constr Allowabl Allowabl

aint
e
e
R.H.
Increase Decreas
Side
e
0 546666.6
520000
667

$H$
12
$H$
13
$H$
6
$H$
7
$H$
8
$H$
9
$H$
10

>=

1480000

>=

2000000

<=

200000
0
820000

1E+30

<=

260000

<=

200000
0
680000

144800
00
100000
0
200000
0
680000

173333.3
333
520000

240000
0

240000
0

493333.3
333

<=
<=

1E+30

173333.3
333
1E+30
1366000
0
740000
493333.3
333
546666.6
667
173333.3
333

Limits Analysis

Cel
l
$G
$4

Cel
l
$A
$3
$B
$3
$C
$3
$D
$3
$E
$3
$F$
3

Objec
tive
Name
Profit

Value
45782.2
2222

Varia
ble
Name

Value

AW

615000

BW

205000

Low
er
Limi
t
6150
00
0

AJ

65000

BJ

195000

6500
0
0

AP

BP

2000000

Objectiv
e
Result

Uppe
r
Limit

Objectiv
e
Result

45782.2
2222
28926.6
6667
45782.2
2222
32912.2
2222
45782.2
2222
102217.
7778

6150
00
2050
00
6500
0
1950
00
0

45782.2
2222
45782.2
2222
45782.2
2222
45782.2
2222
45782.2
2222
45782.2
2222

2000
000

Hence the distribution of Tomatoes will be as follows:

Product

Grade

Grade

Total

Pound per

Cases

Whole
Tomato
Tomato
Juice
Tomato
Paste

A
B
61500
20500
0
0
19500
65000
0
20000
0
00

Case
82000
0
26000
0
20000
00

18

45555.5
6

20

13000

25

80000

So the additional tomato capacity increases the production of Whole tomato

Canners and thus increases the total profits than in Case 1 without additional
Capacity.