Assignment title: Information
Case study: Reducing cafe costs
A cafe at the university has one special dish it serves like clockwork every Monday
at noon. This supposedly tasty dish is a casserole that contains sautéed onions,
boiled sliced potatoes, green beans, and cream of mushroom soup. Unfortunately,
students fail to see the special quality of this dish, and they loathingly refer to it as
the Killer Casserole. The students reluctantly eat the casserole, however, because
the cafe provides only a limited selection of dishes for Monday’s lunch (namely,
the casserole).
Jane Lim, the cafe manager, is looking to cut costs for the coming year, and she
believes that one sure way to cut costs is to buy less expensive and perhaps lower
quality ingredients. Because the casserole is a weekly staple of the cafe menu, she
concludes that if she can cut costs on the ingredients purchased for the casserole,
she can significantly reduce overall cafe operating costs. She therefore decides to
invest time in determining how to minimise the costs of the casserole while
maintaining nutritional and taste requirements.
Jane focuses on reducing the costs of the two main ingredients in the casserole,
the potatoes and green beans. These two ingredients are responsible for the
greatest costs, nutritional content, and taste of the dish.
Jane buys the potatoes and green beans from a wholesaler each week. Potatoes
cost $0.30 per pound (lb), and green beans cost $0.95 per lb.
The university has established nutritional requirements that each main dish of the
cafe must meet. Specifically, the dish must contain 160 grams (g) of protein, 65
milligrams (mg) of iron, and 1,000 mg of vitamin C. For simplicity when planning,
Jane assumes that only the potatoes and green beans contribute to the nutritional
content of the casserole.
Because Jane works at a cutting-edge technological university, she has been
exposed to the numerous resources on the Internet. She decides to find the
nutritional content of potatoes and green beans. Her research yields the following
nutritional information about the two ingredients.
Nutrient Potatoes Green Beans
Protein 1.4 g / 100g 5.9 g / 10 oz
Iron 0.255 mg / 100 g 3.56 mg / 10 oz
Vitamin C 11 mg / 100 g 29.75 mg / 10 oz
(There are 28.35 g in one ounce, and 16 ounces in one pound)
Eddy Brooks, the cafe cook who is surprisingly concerned about taste, informs
Jane that an edible casserole must contain at least a six-to-five ratio in the weight
of potatoes to green beans.
Given the number of students who eat in the cafe, Jane knows that she must
purchase enough potatoes and green beans to prepare a minimum of 12 kilograms
(kg) of casserole each week. (There are 1,000 g in one kg.) Again, for simplicity in
planning, she assumes that only the potatoes and green beans determine the
amount of casserole that can be prepared. Jane does not establish an upper limit
on the amount of casserole to prepare since she knows all leftovers can be served
for many days thereafter or can be used creatively in preparing other dishes.
a. Determine the amount of potatoes and green beans Jane should purchase
each week for the casserole to minimise the ingredient costs while meeting
nutritional, taste, and demand requirements.
Before she makes her final decision, Jane plans to explore the following questions
independently, except where otherwise indicated.
b. Student Union meets during Health Awareness Week and determines that
The university's nutritional requirements for iron are too lax and that
those for vitamin C are too stringent. The Union urges the university to
adopt a policy that requires each serving of an entrée to contain at least
100 mg of iron and at least 500 mg of vitamin C. Using the new nutritional
requirements, determine the amount of potatoes and green beans Jane
should purchase each week.
c. Jane learns that the wholesaler has a shortage of green beans and is now
selling the green beans for a higher price of $1.20 per lb. Using the new
price of the green beans, determine the amount of potatoes and green
beans Jane should purchase each week.
d. Using the new nutritional requirements in part b and the new price of
green beans in part c, determine the amount of potatoes and green beans
Jane should purchase each week.
e. Based on part d, which required nutrition would affect the cost if it were to
be changed. Why?