Question
Different nuts come from different suppliers. They are shipped in bulk containers and ordering a partial container is not possible. The currently available container sizes
Different nuts come from different suppliers. They are shipped in bulk containers and ordering a partial container is not possible. The currently available container sizes and costs are as follows: Type of Nut Container Size (pounds) Cost per Container Almond 6000 $7800 Brazil 7500 $7350 Filbert 7500 $7150 Pecan 6000 $7200 Walnut 7500 $7450 One container of each of the types of nuts has been ordered and is on the way. The sales and marketing teams have projected that initial demand for the different types of mixes will be as follows: Type of Mix Orders (pounds) Regular 10,000 Deluxe 5,000 Holiday 3,000 The president of Brown & Haley wants to commit to producing enough of the various mixes to meet the projected initial demand, even if not immediately profitable, in order to introduce these new mixes to the market. 1. The marketing department is proposing an upgrade to the packaging of the Holiday Mix that would decrease the profit contribution from $2.35 to $2.29 per pound. Would the number of pounds of each type of mix be changed in the optimal solution? (Note that the President would be impressed if you did not need to rerun Solver to answer this question) 2. If the Presidents requirement to meet the initial demand for each type of mix were eliminated would profitability be impacted? If so, by how much? can you please show in excel and show the solver equations, thanks
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