1 17 2 345 5 6 Seed Average Price 3 Marketing Year Index $/short ton 4 127.7 192.4 7 8 B 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10 11 C 12 13 14 15 Historical Price Data Oil D 242 242 274 242 290 347.2 436 422.8 466 582 508 428 434 Average Price Index $/short ton 317.8 465 662.2 668.2 791.3 732 951 1123 1297.3 1312 1416 1664 1317.4 1182.4 1334.4 E Mash Average Price Index $/short ton 63 87 105 111 124 108 134 153 193 187 193 247 242 197 210 ZU 27 28 29 30 31 32 B Supplier ABC А с с Cost as % of Average Market 85% 100% 90% ZU 21 22 23 24 B Supplier A B с C Oleic Acid 72% 82% 65% D lodine 0.95% 0.85% 0.72%
TourneSol Canada, Ltd. is a producer of high quality sunflower oil. The company buys raw sunflower seeds directly from large agricultural companies, and refines the seeds into sunflower oil that it sells in the wholesale market. As a by-product, the company also produces sunflower mash (a paste made from the remains of crushed sunflower seeds) that it sells into the market as base product for animal feed.
The company has a maximum input capacity of 150 short tons of raw sunflower seeds every day (or 54,750 short tons per year). Of course the company cannot run at full capacity every day as it is required to shut down or reduce capacity for maintenance periods every year, and it experiences the occasional mechanical problem. The facility is expected to run at 90% capacity over the year (or on average 150 x 90% = 135 short tons per day).
TourneSol is planning to purchase its supply of raw sunflower seeds from three primary growers, Supplier A, Supplier B, and Supplier C. Purchase prices will not set until the orders are actually placed so TourneSol will have to
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