A bakery produces two types of bread: white bread and whole wheat bread. The bakery
have limited amounts of flour and labor, and want to determine how much
of each type of bread to be produced in order to maximize profits.
The bakery has determined that it can sell white loaves of bread for $2 per loaf and
$3 for whole wheat bread. The profit contribution (profit) for each loaf of bread is $1, and
the profit contribution for each rye loaf is $1.50.
The bakery has a stock of 100 pounds of flour and 40 hours of available labor, each loaf
whites require 1 pound of flour and 0.5 hours of working, while each loaf is rye
requires 1.5 pounds of flour and 1 hour of working. How many of each loaf do you think should be produced in order to maximize the profit of the bakery?
a. Write down the objectives and constraints of the case in the form of a mathematical model
b. Based on your calculations, how many loaves should be produced for
maximize production from the bakery? Include the calculation process
c. If you were the owner of the bakery, what steps would you take
to maximize all the resources you have? and what strategies can you
do to increase the sales of the bakery?