Introduction to Quantitative Decision Making

Case Analysis: Red Brand Canners

Submitted by: Anshuman Agarwal

Roll Number: 2018PGP062

Section: B

Submitted to: Professor Bhuvanesh Pareek

 RED BRAND CANNERS

Case 1: No extra tomatoes purchased

Let Wa, Ja, Pa be the weights of ‘A’ grade tomatoes used to can whole tomatoes,
tomato juice and tomato paste respectively (in pounds)

Also let Wb, Jb, Pb be the weights of ‘B’ grade tomatoes used to can whole
tomatoes, tomato juice and tomato paste respectively (in pounds)

Objective Function:

Maximize: [1.20*(Wa+Wb)/18] + [0.36*(Wa+Wb)/20] + [1.05*(Wa+Wb)/25]

Subject to:

1. Wa + Ja + Pa <= 600000
2. Wb + Jb + Pb <= 2400000
3. Wa + Wb <= 800000
4. Ja + Jb <= 1000000
5. Pa + Pb <=2000000
6. (9*Wa + 5*Wb)/(Wa + Wb) >= 8
7. (9*Ja + 5*Jb)/(Ja + Jb) >= 6
8. (9*Pa + 5*Pb)/(Pa + Pb) >= 5
 Product Item Profitability:

Calculation of Optimizing Variables:

 Sensitivity Analysis:

Solution:

Wa = 600000 pounds

Wb = 200000 pounds

Ja = 0 pounds

Jb = 0 pounds

Pa = 0 pounds

Pb = 2000000 pounds
Case 2: Extra Tomatoes purchased

Objective Function:

Maximize: [4.44*(Wa+Wb)/18] + [3.96*(Wa+Wb)/20] + [5.55*(Wa+Wb)/25] -

(80000*0.255) - (0.18*3000000)

Subject to:

1. Wa + Ja + Pa <= 680000
2. Wb + Jb + Pb <= 2400000
3. Wa + Wb <= 800000
4. Ja + Jb <= 906664
5. Pa + Pb <=2000000
6. (9*Wa + 5*Wb)/(Wa + Wb) >= 8
7. (9*Ja + 5*Jb)/(Ja + Jb) >= 6
8. (9*Pa + 5*Pb)/(Pa + Pb) >= 5
9. Wa + Ja + Pa + Wb + Jb + Pb <= 3000000

Product Item Profitability

Calculation of Optimizing Variables:

Sensitivity Analysis:
Solution:

Wa = 645000 pounds

Wb = 215000 pounds

Ja = 35000 pounds

Jb = 105000 pounds

Pa = 0 pounds

Pb = 2000000 pounds