Question

Yummy Bakery is considering the purchase of 3 wheat farms, located in KS, ND, and WA. The wheat production and costs of these farms are as follows: Production Ton/year Cost ($ mill) KS Farm 15,000 5 ND Farm 12,000 6 WA Farm 17,000 8 The production of these plants have to satisfy the wheat consumption of the Colorado plant, currently at 22000 ton/year. The available budget is $20 mill. The company needs to know which of the 3 farms to purchase in order to minimize cost. Formulate the objective function Question 6 options: Min 5KS 6ND 8WA Min 15,000KS 12,000ND 17,000WA Max 5KS 6ND 8WA Min KS ND WA

Answer 1

Answer: Min 5KS+6ND+8WA

Explanation:

For the objective function to be formulated, we have to minimize the cost. For this to be done, the capacity constraint which is given in the question as 22000 ton/year has to be satisfied.

For this question, the objective function will be to minimize 5KS + 6ND + 8WA. It should be noted that KS, ND and WA in this context are binary variables where 0 represents non-selected farm and 1 represents selected farm.