A snack food manufacturer buys corn for tortilla chips from two cooperatives, one in Iowa and one in Illinois. The price per unit of the Iowa corn is $5.50 and the price per unit of the Illinois corn is $6.00
The objective function that represents the total cost can be formulated = TC = 5.5x1 + 6x2
A constraint equation that the manufacturer needs at least 12000 units of corn can be formulated = x1 + x 2 >=12000
A constraint equation that the Iowa cooperative can supply up to 8000 units can be formulated = x1 <= 8000
A constraint that the Illinois cooperative must supply at least 6000 units can be formulated = x1 <= 6000
Discussion Question
Discuss how the objective function that represents the total cost can be formulated = TC = 5.5x1 + 6x2
Discuss how the constraint equation that the manufacturer needs at least 12000 units of corn can be formulated = x1 + x 2 >=12000
Discuss how to use Graphical Solution Corner Points approach to solve for the optimal solution for this problem.