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Optimization Techniques: Case Study (Walsh'S Juice Company)

Walsh's Juice Company produces juice products from grapes sourced from three vineyards. They aim to minimize total costs by optimizing transportation of grape juice from vineyards to four processing plants, and production of bottled juice, concentrate, and jelly. A linear programming model is formulated to determine how much juice to ship from each vineyard to each plant, and how much of each product to make at each plant, subject to capacity, supply, and process constraints. The optimal solution is presented.
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100% found this document useful (1 vote)
196 views19 pages

Optimization Techniques: Case Study (Walsh'S Juice Company)

Walsh's Juice Company produces juice products from grapes sourced from three vineyards. They aim to minimize total costs by optimizing transportation of grape juice from vineyards to four processing plants, and production of bottled juice, concentrate, and jelly. A linear programming model is formulated to determine how much juice to ship from each vineyard to each plant, and how much of each product to make at each plant, subject to capacity, supply, and process constraints. The optimal solution is presented.
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© © All Rights Reserved
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OPTIMIZATION

TECHNIQUES
CASE STUDY (WALSH’S JUICE
COMPANY)
GROUP : 03
PRESENTED TO: PRESENTED BY:
Dr. Salman Habib
Muhammad Abdullah 2020-IM-13
Jawad Ahmad Maqsood 2020-IM-18
Muhammad Ali Nawaz 2020-IM-33
CONTENT
 Walsh’s Juice Company
 Constraints Model
 Constraints
 Transportation Model
 Objective Function
 Constraints
 Solution

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WALSH’S JUICE COMPANY
 Walsh’s Juice Company produces three products from unprocessed grape
juice—bottled juice, frozen juice concentrate, and jelly. It purchases
grape juice from three vineyards near the Great Lakes. The grapes are
harvested at the vineyards and immediately converted into juice at plants
at the vineyard sites and stored there in refrigerated tanks. The juice is
then transported to four different plants in Virginia, Michigan,
Tennessee, and Indiana, where it is processed into bottled grape juice,
frozen juice concentrate, and jelly. Vineyard output typically differs each
month in the harvesting season, and the plants have different processing
capacities

3
WALSH’S JUICE COMPANY
 In a particular month the vineyard in New York has 1,400 tons of unprocessed
grape juice available, whereas the vineyard in Ohio has 1,700 tons and the
vineyard in Pennsylvania has 1,100 tons. The processing capacity per month
is 1,200 tons of unprocessed juice at the plant in Virginia, 1,100 tons of juice
at the plant in Michigan, 1,400 tons at the plant in Tennessee, and 1,400 tons
at the plant in Indiana. The cost per ton of transporting unprocessed juice from
the vineyards to the plant is as follows:

4
WALSH’S JUICE COMPANY
 The plants are different ages, have different equipment, and have different wage rates;
thus, the cost of processing each product at each plant ($/ton) differs, as follows:

 This month the company needs to process a total of 1,200 tons of bottled juice, 900 tons of
frozen concentrate, and 700 tons of jelly at the four plants combined. However, the
production process for frozen concentrate results in some juice dehydration, and the
process for jelly includes a cooking stage that evaporates water content. To process 1 ton of
frozen concentrate requires 2 tons of unprocessed juice; 1 ton of jelly requires 1.5 tons of
unprocessed juice; and 1 ton of bottled juice requires 1 ton of unprocessed juice.

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WALSH’S JUICE COMPANY
 Walsh’s management wants to determine how many tons of grape juice to ship
from each of the vineyards to each of the plants and the number of tons of
each product to process at each plant. Thus, management needs a model that
includes both the logistical aspects of this problem and the production
processing aspects. It wants a solution that will minimize total costs, including
the cost of transporting grape juice from the vineyards to the plants and the
product processing costs. Help Walsh’s solve this problem by formulating a
linear programming model and solve it by using the computer.

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WALSH’S JUICE COMPANY
Walsh’s Juice Company is a juice company
that produces and processes juice and jelly.
The industry in which they operate are
Agriculture and Food Processing.

Our main objective is to minimize total


cost ; Transportation and Processing cost.

7
CONSTRAINTS MODEL

1 2
3 a
b c d

x y
z 8
CONSTRAINTS

9
TRANSPORTATION MODEL
a
VIRGINIA
1 NEW YORK JUICE x
b
MICHIGAN
2 OHIO CONCENTRATE y
c
TENNESSE
PENNSYLVAI
3 A d
JELLY z
INDIANA
10
VINYARD PLANT PRODUCTS

11
OBJECTIVE FUNCTION
Minimize
Z=850X1a + 720X1b + 910X1c + 750X1d + 970X2a +
790X2b + 1050X2c + 880X2d + 900X3a + 830X3b +
780X3c + 820X3d + 2100Xxa + 2350Xxb + 2200Xxc
+ 1900Xxd + 4500Xya + 4300Xyb + 3950Xyc +
3900Xyd + 2600Xza + 2300Xzb + 2500Xzc +
2800Xzd;

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CONSTRAINTS
 X1a+X1b+X1c+X1d<=1400;
 X3a+X3b+X3c+X3d<=1700;
 X2a+X2b+X2c+X2d<=1100;

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CONSTRAINTS
 Xxa+Xya+Xza<=1200;
 Xxb+Xyb+Xzb<=1100;
 Xxc+Xyc+Xzc<=1400;
 Xxd+Xyd+Xzd<=1400;

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CONSTRAINTS
 Xxa+Xxb+Xxc+Xxd=1200;
 Xya+Xyb+Xyc+Xyd=900;
 Xza+Xzb+Xzc+Xzd=700;

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CONSTRAINTS
 Xxa+2Xya+1.5Xza=X1a+X2a+X3a;
 Xxb+2Xyb+1.5Xzb=X1b+X2b+X3b;
 Xxc+2Xyc+1.5Xzc=X1c+X2c+X3c;
 Xxd+2Xyd+1.5Xzd=X1d+X2d+X3d;

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CONSTRAINTS
X1a>=0; Xxa>=0;
X1b>=0; Xxb>=0;
X1c>=0; Xxc>=0;
X1d>=0; Xxd>=0;
X2a>=0; Xya>=0;
X2b>=0; Xyb>=0;
X2c>=0; Xyc>=0;
X2d>=0; Xyd>=0;
X3a>=0; Xza>=0;
X3b>=0; Xzb>=0;
X3c>=0; Xzc>=0;
X3d>=0; Xzd>=0; 17
SOLUTION Objective Value
10566000

Variable Value Variable Value


X1a 300 Xxa 0
X1b 0 Xxb 420
X1c 185 Xxc 275
X1d 0 Xxd 0
X2a 350 Xya 200
X2b 0 Xyb 340
X2c 255 Xyc 0
X2d 60 Xyd 0
X3a 295 Xza 45
X3b 55 Xzb 0
X3c 0 Xzc 207
X3d 15 Xzd 545
18
THANK YOU

19

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