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Problem 1

The document outlines a linear programming problem focused on optimizing product mix and waste management for a coffee shop. Scenario A aims to maximize daily profit with specific constraints, resulting in a total profit of $387.50, while Scenario B seeks to minimize ingredient usage with a total profit of $318.50. Both scenarios define decision variables for different products sold and include various constraints related to resources and budget.

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3 views2 pages

Problem 1

The document outlines a linear programming problem focused on optimizing product mix and waste management for a coffee shop. Scenario A aims to maximize daily profit with specific constraints, resulting in a total profit of $387.50, while Scenario B seeks to minimize ingredient usage with a total profit of $318.50. Both scenarios define decision variables for different products sold and include various constraints related to resources and budget.

Uploaded by

imranhossainratul52
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Problem 1: Product Mix Optimization (Linear Programming)

This problem presents Product Mix and Waste Management .

e) System of Equations and LP Models

Define Decision Variables :

x₁ = Number of Regular Coffee cups sold per day


x₂ = Number of Cappuccino cups sold per day
x₃ = Number of Latte cups sold per day
x₄ = Number of Pastries pieces sold per day
x₅ = Number of Sandwiches pieces sold per day

SCENARIO A: MAXIMIZE DAILY PROFIT

Maximize Z = 2.30x₁ + 2.70x₂ + 2.50x₃ + 2.50x₄ + 3.50x₅

Subject to Constraints:

0.25x₂ + 0.30x₃ + 0.05x₄ ≤ 35 (Milk constraint, in liters)


18x₁ + 22x₂ + 20x₃ ≤ 12,000 (Coffee beans constraint, in grams)
80x₄ + 120x₅ ≤ 8,000 ( Flour constraint, in grams)
5x₁ + 8x₂ + 10x₃ + 20x₄ + 5x₅ ≤ 5,000 (Sugar constraint, in grams)
3x₁ + 7x₂ + 6x₃ + 12x₄ + 15x₅ ≤ 900 (Labor constraint, in minutes)
1.20x₁ + 2.80x₂ + 2.50x₃ + 2.00x₄ + 3.50x₅ ≤ 1,000 (Budget constraint, in dollars)
x₁ + x₂ + x₃ + x₄ + x₅ ≤ 500 (Storage constraint, in units)
x₁, x₂, x₃, x₄, x₅ ≥ 0 (Non-negativity constraint)

SCENARIO B: MINIMIZE TOTAL INGREDIENT USAGE (Waste Reduction)

Objective Function:

Minimize W = 0.05x₁ + 0.10x₂ + 0.09x₃ + 0.08x₄ + 0.12x₅

Subject to all constraints from Scenario A, PLUS:

2.30x₁ + 2.70x₂ + 2.50x₃ + 2.50x₄ + 3.50x₅ ≥ 300 (Minimum profit constraint)


Now, Excel Solver Setup

f) Excel Solver Result:


Scenario A Maximize Profit :

Product Optimal Units/Day Profit Contribution


Regular Coffee(x1) 80 cups $184.00
Cappuccino (x2) 30 cups $81.00
Latte (x3) 20 cups $50.00
Pastries (x4) 15 pieces $37.50
Sandwiches(x5) 10 pieces $35.00
Total Daily Profit $387.50

Scenario B Minimize Waste:

Product Optimal Units/Day Profit Contribution


Regular Coffee(x1) 50 cups $115.00
Cappuccino (x2) 30 cups $81.00
Latte (x3) 20 cups $50.00
Pastries (x4) 15 pieces $37.50
Sandwiches(x5) 10 pieces $35.00
Total Daily Profit $318.50

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