a. Paul is preparing a loading plan for an ICC freighter destined for Ghana. An agricultural commodities dealer wants to tra

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing
Section: Chapter Questions
Problem 14E
icon
Related questions
Question
100%

PLEASE USE EXCEL

Paul Bergey is in charge of loading cargo ships for International Cargo Company
(ICC) at the port in Newport News, Virginia. Paul is preparing a loading plan for an ICC freighter destined for Ghana. An agricultural commodities dealer wants to transport the following products aboard this ship.
Commodity   Amount Available  Volume per Ton  Profit per Ton
                         (tons)                   (cubic feet)            ($)                                                                           
A                       4,800                      40                        70
B                      2,500                      25                         50
C                     1,200                      60                          60
D                     1,700                       55                          80

Paul can elect to load any and/or all of the available commodities. However, the
ship has three cargo holds with the following capacity restrictions.
Cargo Hold     Weight Capacity      Volume Capacity

                               (tons)                         (cubic feet)

Forward             3,000                       145,000
Center              6,000                          180,000
Read               4,000                           155,000

More than one type of commodity can be placed in the same cargo hold. However,
because of balance considerations, the weight in the forward cargo hold must be
within 10% of the weight in the rear cargo hold, and the center cargo hold must be
between 40% and 60% of the total weight on board.
1. Formulate the LP model for this problem.
2. Create the spreadsheet model and use Solver to solve the problem.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 6 steps with 7 images

Blurred answer
Knowledge Booster
Commodity Price Risk
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning