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Chocoban Case

I. Decision Variables:
R0 Premium
R1 Chocodant
R2- Chocomer
II. Objective Function
Maximize Z= P43.00 R0+P31.50 R1 + P27.00 R2
III. Model Constraints
The resources available including processing time (Molder and Mixer) and
supply (coffee bean).
A. Mixing
24hr/500kgs R1 + 24hr/300kgs R2<= 24 hours
.048 hr R1 + .08 hr R2 <= 24 hours
B. Molding
24hr/271kgs R1 + 24hr/633kgs R2<= 24 hours
.088 hr R1 + .038 hr R2 <= 24 hours
C. Supply of Coffee Bean
Present Allocation

2,400 kgs

Maximum Increase: (20%)


Maximum Supply

480 kgs

2.880 kgs6

6R0++ 4R1 + 3R3 = 2,880kgs


e. Cost of coffee bean
9.50R0++ 9.50R1 + 9.50R3 = P 27,360
(2,400 x 1.2 x 9.5/kg)
d. Production cost excluding cost of coffee bean
25R0++ 6R1 + 5.50R3 = P 12,000
(400kgs candy * 120% -based on coffeebean requirement * 25 per kg= P12,000)
e. Non negativity Constraint

R1 + R2 >= 0

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