Essay About Tomatoes Availability Constraints And Red Brand Canners

Red Brand Canners
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Red Brand
Canners
Case Study
Red Brand Canners
Summary
Red Brand Canners
Context 3
Red Brand Canners is a medium-size company canning and distributing a variety of fruit and vegetable
products. This year Red Brand Canners bought the 3,000,000 lbs. grower’s tomato production at an average
price of 6 cents per pound. Moreover there’s the possibility to buy an additional quantity of 80,000 lbs. of
grade “A” tomato at a price of 8.5 cents per pound.
The tomatoes product range consists of:
• Whole tomatoes
• Tomato juice
• Tomato paste
Average quality for grade “A” tomatoes is 9, while average quality for grade “B” tomatoes is 5. Minimum
input quality for whole canned tomatoes is 8, while minimum input quality for tomato juice is 6. Tomato
paste can be made entirely from grade “B” tomatoes.
Bill Cooper, the controller, and Charles Myers, the sales manager, gave two contrasting solutions on how to
allocate the tomatoes for production.
Purpose of the document
In this document we will see:
• A comparison between Cooper’s solution and Myers’s solution
• A different solution
• Whether to buy or not an additional quantity of 80,000 lbs. of grade “A” tomatoes
Now we introduce some variables that will be used for the rest of the document:
Variable Description
QWA Quantity of whole tomatoes grade “A”
QWB Quantity of whole tomatoes grade “B”
QJA Quantity of tomato juice grade “A”