Applied Operations Research problem

May 15th, 2015
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Fruit Computer Company is ready to make its annual purchase of computer chips. Fruit can purchase chips (in lots of 100) from three suppliers. Each chip is rated as being excellent, good, or mediocre quality.

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Applied Operations ResearchPage 199, Problem 2Problem Statement:Fruit Computer Company is ready to make its annual purchase of computer chips. Fruit can purchase chips (in lots of 100) from three suppliers. Each chip is rated as being excellent, good, or mediocre quality. During the coming year, Fruit will need 5000 excellent chips, 3000 good chips, and 1000 mediocre chips. The characteristics of the chips purchased from each supplier are shown below:| |Characteristics of a Lot of 100 Chips |Prices per 100 Chips. | | |Excellent |Good |Mediocre | | |Supplier 1 |60 |20 |20 |$400 | |Supplier 2 |50 |35 |15 |$300 | |Supplier 3 |40 |20 |40 |$250 |Each year, Fruit has budgeted $28,000 to spend on chips. If Fruit does not obtain enough chips of a given quality, the company may special-order additional chips at $10 per excellent chip, $6 per good chips, and $4 for mediocre chip. Fruit

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