RED BRAND CANNERS Case Study-Somaskhandan [10BM60087]-Sathiyaseelan M [10BM60080]- Renjith R[10BM60070]- Satyam Khatri[10BM60081]

OverviewProblem Overview.Cooper’s suggestion.Tucker’s suggestion.Meyers suggestion.Applying Gordon’s Data.Comparison.Conclusion.

Problem OverviewRed Brand Canners – company that canned and

distributed variety of fruit and vegetable products.

Product inspection estimates.Total crop – 3 million lb.20 % Grade A.[9 points per pound]80% Grade B.[5 points per pound]

3 tomato products.Canned tomatoes.Tomato Paste.Tomato Juice.

LP formulation

Grade A Grade B

Whole canned tomatoes

WA WB

Tomato Juice JA JB

Tomato Paste PA PB

Values in Pounds

Cooper’s Suggestion0.40 / 18 = 0.0222 [Contribution per pound for Whole tomatoes of Grade A].

Objective function = 0.08222*WA + 0.08222*WB + 0.066*JA + 0.066*JB + 0.074*PA + 0.074*PB - 180000 ;

WA +JA + PA <=600000;WB +JB + PB <=2400000;WA +JA + PA + WB +JB + PB <= 3000000;JA + JB <= 1000000; Demand for JuicePA + PB <= 2000000; Demand for PasteWA + WB <=1800000; Demand for Whole Tomatoes

Tucker’s Suggestion

Objective function = 0.08222*WA + 0.08222*WB + 0.066*JA + 0.066*JB + 0.074*PA + 0.074*PB - 180000;

WA +JA + PA <=600000; WB +JB + PB <=2400000; WA +JA + PA + WB +JB + PB <= 3000000; WA + WB <= 800000; JA + JB <= 1000000; PA + PB <= 2000000; WA>=3*WB; 3*JA >= JB;

Minimum quality for

In Points per Pound

Whole Tomatoes

8

Tomato Juice 6

Tomato Paste 5

Meyer’s SuggestionObjective function = -.0055*WA - .0055*WB +

0.004*JA + 0.004*JB + 0.022*PA + 0.022*PB;WA +JA + PA <=600000;WB +JB + PB <=2400000;WA +JA + PA + WB +JB + PB <= 3000000;JA + JB <= 1000000;PA + PB <= 2000000;WA + WB <=1800000;

Gordon’s DataAdditional 80000 pounds of Grade A tomatoes

are available at 8.5 cents per pound.WA +JA + PA <=680000;WB +JB + PB <=2400000;WA +JA + PA + WB +JB + PB <= 3080000;Objective function = 0.08222*WA +

0.08222*WB + 0.066*JA + 0.066*JB + 0.074*PA + 0.074*PB - 180000 - (0.085 * 80000);

Comparison

Coopers Suggestion Tuckers Suggestion

Meyers Suggestio

nW/O

Gordon’s Data

With Gordon's

Data

W/O Gordon’s

Data

With Gordon's

Data

W/O Gordon’s

Data

WA 0 0 525000 615000 0

WB 1800000 1800000 175000 205000 0

JA 0 0 75000 65000 600000

JB 0 0 225000 1950000 400000

PA 600000 680000 0 0 0

PB 600000 600000 2000000 2000000 2000000

ComparisonWithout

Incorporating Gordon’s Data

Incorporating Gordon’s Data

Cooper’s Suggestion 56796 55916

Tuckers ‘s Suggestion 45354 45780

Meyer’s Suggestion 48000 -

ConclusionOnly a small portion of tomato crop was

quality A and some quality constraints should be maintained for the products, Coopers suggestion is not valid.

Red Brand has already signed contract agreement topurchase 3 millions pounds tomato at a cost of 6 cents average. Myers calculated tomato cost separately for grade A and B which had an impact in his calculation.

Tucker’s Suggestion along with Gordon’s data yields a maximum contribution.

Thank You