The Production Planner for Fine Coffees,Inc

question 19

Multiple Choice

The production planner for Fine Coffees,Inc.produces two coffee blends: American (A) and British (B) .Two of his resources are constrained: Columbia beans,of which he can get at most 300 pounds (4,800 ounces) per week; and Dominican beans,of which he can get at most 200 pounds (3,200 ounces) per week.Each pound of American blend coffee requires 12 ounces of Colombian beans and 4 ounces of Dominican beans; while a pound of British blend coffee uses 8 ounces of each type of bean.Profits for the American blend are $2.00 per pound,and profits for the British blend are $1.00 per pound.What is the objective function?

• A)Z = $1 A + $2 B
• B)Z = $12 A + $8 B
• C)Z = $2 A + $1 B
• D)Z = $8 A + $12 B
• E)Z = $4 A + $8 B

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Definitions:

Simplicity

The quality of being easily understood or performed; favoring clear, uncluttered methods and procedures.

Managers

Individuals responsible for controlling or administering all or part of a company or similar organization.

Capital Budgeting Process

Involves the evaluation and selection of long-term investments that are in line with the firm's goal of shareholder wealth maximization.

Products

Goods or services that are created through a process and offered in the market to satisfy consumer needs or wants.