A Coffee Manufacturing Company Has Two Processing Plants (P1 and P2)

question 25

Essay

A coffee manufacturing company has two processing plants (P1 and P2) that roast imported coffee beans. After roasting, the plants produce three types of coffee beans, A, B, and C. The company has contracted with a chain of cafes to provide coffee beans each week in the following quantities - 20 tons of type A, 11 tons of type B, and 18 tons of type C. The two plants have the same capacity, but their diverse operational procedures affect costs per ton as below.
​ $$\begin{array} { l c c c c } & { \text { Manufacturing Cost per Ton (\$) } } & \\\hline \text { Plant } & \text { A } & \text { B } & \text { C } & \text { Capacity } \\\hline \text { P1 } & 900 & 1125 & 875 & 25 \\\text { P2 } & 850 & 1200 & 950 & 25 \\\text { Demand } & 20 & 11 & 18 &\end{array}$$ ​
Formulate and solve the all-integer model that will determine how many tons of each type of coffee beans are produced in each plant while minimizing the total cost.

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Definitions:

AASB 41

The Australian Accounting Standards Board’s standard related to agriculture, which outlines how agricultural companies should account for and report their agricultural activity.

IAS 41

International Accounting Standard 41 is a framework governing the accounting and reporting of agricultural activity.

AASB 120

An Australian accounting standard regarding accounting for government grants and disclosure of government assistance.

IAS 20

A regulation named "Accounting for Government Grants and Disclosure of Government Assistance" under International Accounting Standards.