Wollmer Distribution Company collects fruit from several small farms in the region, consolidates its collections, and th

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Wollmer Distribution Company collects fruit from several small farms in the region, consolidates its collections, and th

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Wollmer Distribution Company Collects Fruit From Several Small Farms In The Region Consolidates Its Collections And Th 1
Wollmer Distribution Company Collects Fruit From Several Small Farms In The Region Consolidates Its Collections And Th 1 (79.88 KiB) Viewed 33 times
Wollmer Distribution Company collects fruit from several small farms in the region, consolidates its collections, and then ships the fruit to a regional wholesale fruit market by truck. The purchase costs are in the following table. Fruit Truck 1 Truck 2 Truck 3 Grapes Peaches Bananas Wollmer owns four trucks that can transport fruit to market. Each truck has its own capacity, and Wollmer has discovered that yield losses occur at different rates depending on which fruit is carried in which truck. The truck suspension system and the efficiency of the refrigeration system seem to account for most of the losses. The following table shows the loss as a percentage and the truck capacity. Truck 4 Grapes 12% 12% 16% 18% Fruit Peaches 10% 14% Grapes Peaches Bananas 13% Purchase Cost/Ton 17% Bananas 4% 5% $200 600 1400 6% 8% Wollmer needs to sell at least 20 tons of each fruit in the market. The current market prices for the three fruits are as follows. Price/Ton Capacity (T) 40 50 $500 1000 1750 55 75 Set up a spreadsheet model and use solver to find the optimal purchase, shipping and selling plans.
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