Optimal production mix. (CMA, adapted) Della Simpson Inc. sells two popular brands of cookies, Della's Delight and
Question:
Optimal production mix. (CMA, adapted) Della Simpson Inc. sells two popular brands of cookies, Della's Delight and Bonny's Bourbon. Della's Delight goes through the Mixing and Baking Departments and Bonny's Bourbon, a filled cookie, goes through the Mixing, Filling, and Baking departments. Michael Shirra, vice-president for sales, believes that at the current price, Della Simpson can sell all of its daily production of Della's Delight and Bonny's Bourbon. Both cookies are made in batches of 3,000 cookies. The batch times (in minutes) for producing each type of cookie and the minutes available per day are as follows:
REQUIRED 1. Using D to represent the batches of Della’s Delight and B to represent the batches of Bonny’s Bourbon made and sold each day, formulate Shirra’s decision as a linear programming model.
2. Compute the optimal number of batches of each type of cookie that Della Simpson Inc.
should make and sell each day to maximize operating‘income.LO1
Step by Step Answer:
Cost Accounting A Managerial Emphasis
ISBN: 9780135004937
5th Canadian Edition
Authors: Charles T. Horngren, Foster George, Srikand M. Datar, Maureen P. Gowing