[07:59] Jaisingh, Mohit

Jennifer has just been notified that the automated warehouse has some capacity issues and it can only store 750 units of the T0 model every month. Which of the following options is true about this constraint?

Select the correct answer.

If Mysneak keeps 750 units of T0 in stock for the month, the probability of stocking out is only 1%.

This capacity limit will directly impact the probability of fulfilling the demand.

If the capacity limit doubles and Mysneak decides to keep 1500 units in stock, the probability of fulfilling the demand will also double.

[08:02] Jaisingh, Mohit

Aurelia, a famous Belgian chocolate manufacturer, hired you to help with production planning in their continuous effort to increase the company's profits. You are in charge of optimizing the production line for the top sellers of the brand:

• Product A: White chocolate bar
• Product B: Milk chocolate bar
• Product C: Dark chocolate bar

Aurelia is the biggest player in the Belgian chocolate market, so it's fair to assume that no matter how much they produce of each chocolate type, all units will be sold.

To learn more about Aurelia's products, you meet first with the production plant manager, Gladys Rogers. She shares the ingredient requirements for all three products in Table 1.

Table 1: Ingredients required per unit of product (in ounces)

Product / Ingredients	Sugar	Milk powder	Cocoa Butter	Roasted Cocoa Beans
Product A	12.6	9	14.4	0
Product B	12.6	9	7.2	7.2
Product C	10.8	0	0	25.2

Eric Garcia, managing Aurelia's warehouse, provides you with the following data.

Table 2: Ingredients in inventory (in ounces) and cost per ingredient (in $ per ounce)

Ingredient	Inventory on hand in Ounces	$ per Ounce
Sugar	10000	0.1
Milk Powder	7500	0.15
Cocoa Butter	6000	0.24
Roasted cacao beans	8000	0.38

You know that Profit is calculated as Revenue minus Cost. You've got information about costs, but you are missing the product selling price. Fortunately, Mr. Garcia from sales is a phone call away and provides you with the information in Table 3. He also mentions that products are sold in units, so producing or selling half a unit is not an option.

Table 3: Selling Price (in $ per unit)

Product	Price in $ per unit
Product A	7
Product B	10
Product C	16

Ms. Rogers contacts you again to analyze the possibility of adding a new product to the line they identify as Product D: Ruby Chocolate bar. Manufacturing one unit of this new product requires 17.6 ounces of sugar, 10.8 ounces of milk powder, 6.5 ounces of cocoa butter, and 1.1 ounces of roasted cocoa beans.

Based on market research, Aurelia could sell each unit of Ruby Chocolate bar for $8.

Incorporating this new product into the production line requires adjusting some of the machines in use, and that would limit the TOTAL production capacity to 700 units.

With the newly available information, adjust your model. What's the maximum profit that could be achieved with the available inventory of ingredients, considering the new product introduction and the capacity constraint?

Round your answer to the nearest integer.

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Question 3

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After reviewing the results with Aurelia's team, you all agree that you should disregard the Question 2 scenario and continue to work with the data and conditions from Question 1.

During the same meeting, you learn from Gladys that there is a fixed cost of $350 for producing the chocolate bars that contain roasted cocoa beans due to additional manual work for the roasting machine's setup. Adjust your model to include these fixed setup costs.

Considering this new information, what is the maximum profit that could be achieved?

Round your answer to the nearest integer.

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Question 4

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During the next team meeting you present your updated results. Gladys shares that she has been working with the innovation team and managed to automate the roasting machines' setup so that it will have no impact on future production runs. With that, you are back to work with Question 1 scenario.

At that meeting, a colleague presents a new customer opportunity. This potential customer is a major player in the chocolate retail market and wants Aurelia to commit at least 129 bars of Product A to ensure enough variety of chocolate for their customers. Adjust your model to comply with this potential customer's agreement.

What is the maximum profit that could be achieved with the available inventory of ingredients in this case?

Round your answer to the nearest integer.

Note: Before answering the first question, make sure that you have copied all numbers in tables, especially decimal numbers, correctly! Different regional settings in Excel or Libre Office will require transforming "." to "," when using decimal numbers.

Using the information you gathered from Aurelia's team members, what's the maximum profit that could be achieved with the available inventory of ingredients?