Question

2.18 A vegetable oil processor wishes to determine how much shortening, salad oil, and margarine to produce to optimize the use its current oil stock supply. At the present time, he has 250,000 kg of soybean oil, 110,000 kg of cottonseed oil, and 2000 kg of milk-base substances. The milk-base substances are required only in the production of margarine. There are certain processing losses associated with each product: 10% for shortening, 5% for salad oil, and no loss for margarine. The producer's back orders require him to produce at least 100,000 kg of shortening, 50,000 kg of salad oil, and 10,000 kg of margarine. In addition, sales forecasts indicate a strong demand for all products in the near future. The profit per kilogram and the base stock required peir kilogram of each product are given in Table E2.18. Formulate the problem to maximize profit over the next production-scheduling period (created by J. Liittschwager) TABLE E2.18 Data for the Vegetable Oil Processing Problenm Parts per kg of base stock requirements Product Shortening Salad oil Margarine Cottonseed Milk base Profit per kg 1.00 0.80 0.50 Soybean 0

Answer 1

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