A General Piecewise Linear Canning Problem Model

Abstract

This paper presents a general canning problem model consisting of a piecewise linear profit function with two breakpoints. The model is flexible enough to include several previous models as special cases. In addition, the model covers situations heretofore unaddressed in the literature. The proposed approach is a practical one which can be carried out using an electronic spreadsheet, regardless of which model parameter is the decision variable. This paper also derives a simple relationship between two competing objective functions for the canning problem: expected profit per fill-attempt and expected profit per can to be filled. Use of this relationship avoids the recursive equations used previously to handle profit per can to be filled. The differences between these two objective functions are clarified, and the conditions under which each is appropriate are articulated.

• Canning Problem
• Economic Selection
• Quality Selection

Additional information

Notes on contributors

Phillip E. Pfeifer

Dr. Pfeifer is a Professor of Business Administration in the Darden Graduate School of Business. His email address is [email protected].