Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Courtney is an operations manager for Mudsock Snack Company, which produces trail mix. Her job is to maximize profit and to make sure the
Courtney is an operations manager for Mudsock Snack Company, which produces trail mix. Her job is to maximize profit and to make sure the correct amount of each ingredient gets combined into ideal mix ratios for the desired trail mix brands. Courtney must order various quantities of each material while ensuring that weekly demand is met without ordering more material than needed. The table below displays the secret mix ratio in each brand of trail mix, and the amount of each ingredient that Courtney can purchase from her suppliers. Old Ingredients Appalachian Santa Fe Happy Oregon Cost/lb Max Weekly Available Spanish (lbs) Pretzels 20% 20% 15% 25% 25% $4.25 11,000.00 Raisins 20% 20% 20% 25% 25% $5.25 6,500.00 Chocolate candies 20% 30% 15% 20% 20% $6.50 9,500.00 Peanuts 25% 20% 30% 15% 20% $5.75 4,000.00 Cashews 15% 10% 20% 15% 10% $6.00 3,500.00 Mudsock Snack Company earns revenues of $8.50 per pound sold of Appalachian, $10.75 per pound of Santa Fe, $10.50 per pound of Old Spanish, $9.75 per pound of Happy and $9.00 per pound of Oregon. Due to public relation and health concerns the company limits production of the "Santa Fe" mix to 5,000 pounds per week. At the very minimum, the company requires that at least 5,500 pounds of "Appalachian" and 6,000 pounds of "Oregon" mix are manufactured each week. Due to capacity constraints the company only has the capability to manufacture 28,000 pounds of trail mix per week. Additionally, the company executives have the following requirements: Oregon brand must earn more profits than Appalachian, and also earn more profits than Old Spanish Combined profits from the Santa Fe brand and Old Spanish brand must be at least 25% of the firm's total profits You should assume that there is excess demand for all of Mudsock Snack Company's products, and thus it will sell whatever it manufactures. Formulate a linear program and solve to find the ideal production mix (in pounds) that Courtney strives to manufacture each week, and the associated profit from it. Round all answers to three decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started