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GoNuts Juice Company GoNuts Juice Company: Model 2 Gouts manufactures different juices made entirely of various exotic nuts. Their primary market is China and they
GoNuts Juice Company GoNuts Juice Company: Model 2 Gouts manufactures different juices made entirely of various exotic nuts. Their primary market is China and they operate three plants located in Ethiopia, Tanzania, and Nigeria. You have been asked to help them determine where to manufacture the two newest juices they offer, Gingko Nut and Kola Nut. Each plant has a different fixed and variable cost structure and capacity for manufacturing the different juices. The fixed cost only applies if the plant produces any juice. Also, each juice has an expected demand. Cost/Unit Ginko Kola Capacity Units/Month Fixed (Y/Month) Ethiopia 21.00 Y22.50 Ethiopia 425 1,500 Tanzania 22.50 24.50 Tanzania 400 V2,000 Nigeria Y23.00 25.50 Nigeria 750 3,000 Demand Units/Month GinkO 550 Kola 450 How much of each juice should be made at each plant in order to minimize total cost while meeting demand and adhering to plant capacity
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