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Problem 2: Carter Enterprises is involved in the soybean business in South Carolina, Alabama,
and Georgia. The president of the company, Earl Carter, goes to a commodity sale once a month
where he buys and sells soybeans in bulk. Carter uses a local warehouse for storing his soybean
inventory. This warehouse charges $20 per average ton of soybeans stored per month (based
on the average of the beginning and ending inventory each month). The warehouse guarantees
Carter the capacity to store up to 200 tons of soybeans at the end of each month. Carter has
estimated what he believes the price per ton of soybeans will be during each of the next six
months. These prices are summarized in the following table.
Month
Price per
ton
1
$125
2
$110
3
$140
4
$165
5
$135
6
$140
Assume that Carter currently has 80 tons of soybeans stored in the warehouse. Carter needs to
know how much soybeans should he buy and sell during each of the next six months to
maximize his profit trading soybeans.
Formulate an LP model for this problem.
Sagot :
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