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Fresh Choice Snack Foods hired you as a consultant to help identify the potential optimal solutions to fulfill their current orders while also helping with
Fresh Choice Snack Foods hired you as a consultant to help identify the potential "optimal solutions" to fulfill their current orders while also helping with global sourcing decisions for the inputs that can be purchased from suppliers in other countries. The company has an outstanding contract for 10,000,000 Lbs of its trail mix but the changing pricing landscape is destroying the company's margins. When researching prices with international suppliers, Fresh Choice was able to negotiate a seven day lock on the following prices; however, since the company is seeking to diversify its supplier base. As such, NO COMPANY CAN ACCOUNT FOR MORE THAN 15% OF THE COMMODITY BEING SUPPLIED: The Pre-Pandemic Sources and Prices are as follows: Location California Product Price ($/Lb) Freight Mix % Mix % ($/Lb) (Low) (High) Almonds $ 2.50 $ 0.10 10% 25% California Raisins $ 0.99 $ 0.12 10% 25% Hawaii Coconut Shavings $ 2.00 $ 0.50 10% 25% Michigan Dried Tart Sweet Cherries $ Ohio Chocolate Bits $ Pennsylvania Chocolate Bits $ | | 4.00 $ 0.35 10% 25% 0.75 $ 0.12 10% 25% 0.85 $ 0.10 10% 25% Changing Value Given Information Constraint Objective Pre-Pandemic Contract Scenario (US ONLY) Product Almonds Raisins Coconut Shavings Dried Tart Sweet Cherries Chocolate Bits Total % Mix Current Mix Cost California California Hawaii Michigan Ohio Pennsylvania Total Low High 0.00% 10% 25% Outstanding Contract Amount = 10,000,000 0.00% 10% 25% 0.00% 10% 25% Total Cost = $ 0.00% 10% 25% 0.00% 10% 25% 0.00% 0.00% 0.00% 0.00% 0.00% Product California California Hawaii Michigan Ohio 0.00% 0.00% x x Pennsylvania Counted Min Count Almonds 1 0 0 0 1 Raisins 0 1 0 0 1 X Coconut Shavings 1 0 1 X Dried Tart Sweet Cherries 0 0 0 1 0 0 1 X Chocolate Bits 0 0 0 1 1 2 X Entry Counted Min Count Needed x x x x x x Product Almonds Raisins Coconut Shavings Dried Tart Sweet Cherries Chocolate Bits Product Almonds Raisins Coconut Shavings Dried Tart Sweet Cherries Chocolate Bits California California Input Costs $/Lb Hawaii Michigan Ohio Pennsylvania $ 2.50 $ 0.99 $ 2.00 4.00 $ 0.75 $ 0.85 Freight Costs $/Lb California Hawall Michigan Ohio Pennsylvania California $ 0.10 $ 0.12 $ 0.50 $ 0.35 $ 0.12 $ 0.10
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