TJ’s, Inc., makes three nut mixes for sale to grocery chains located in the Southeast. The three mixes, referred as the Regular Mix, Deluxe Mix, Holiday Mix. Now TJ’s is committed to using the available nuts to maximize profit of the fall seasons, and they must satisfy the received orders. Problem Solving Approach:
This problem was solved using Excel Solver LP Programming. The decision variables are pounds of each type of Mix. The objective function was a formula of profit contribution for each Mix. The constraints are the nuts purchased the following shipment and the orders that need to be satisfied.
The following summarizes the variables and coefficients of the mathematical model:
Variable or Coefficient Unit of Measure Description
R Pounds Pounds of Regular Mix
D Pounds Pounds of Deluxe Mix
H Pounds Pounds of Holiday Mix
Description Regular Deluxe Holiday Shipment amount Cost per shipment
Orders (Pounds) 10000 3000 5000
Almond Consist percentage 0.15 0.20 0.25 6000 7500
Brazil Consist percentage 0.25 0.20 0.15 7500 7125
Filbert Consist percentage 0.25 0.20 0.15 7500 6750
Pecan Consist percentage 0.10 0.20 0.25 6000 7200
Walnut Consist percentage 0.25 0.20 0.20 7500 7875
Profit (Dollars)
( Not include cost of nuts) 1.65 2 2.25
The following is the mathematical formulation of the problem:
Maximize 1.65R + 2D + 2.25H Objective function
Subject to: 0.15R + 0.2D + 0.25H = 10000
Deluxe 10625 >= 3000
Holiday 5000 >= 5000 Constrains2 Nuts Used Available
Almond