Question
I need help with this quantitative analysis problem. I see that it's been asked in the past but there are sections that I need help
I need help with this quantitative analysis problem. I see that it's been asked in the past but there are sections that I need help with the questions at the end of this that are not included in previous questions/ answers.
CJ foods, Inc is a company headquartered in South Korea. They make three types of sauces for sale to grocery stores located in East Asia. The three types of Korean BBQ sauces are referred to as Original, Pineapple and Hot & Spicy. They are made by mixing different percentages of five types of ingredients. CJ foods, Inc., purchased the following shipment of ingredients to prepare for the upcoming 2015 prices. The prices and shipment amounts (pounds) are shown in Table 1.
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An accountant for CJ Food Inc., analyzes the cost of packaging materials, sales price per pound, and so forth, and determined that the profit contribution per pound is $1.55 for the Original sauce, $2.1 for the Pineapple sauce, and $2.35 for the Hot & Spicy sauce. These figures do not include the cost of specific types of ingredients in the different sauces because that cost can vary greatly in the commodity market. Customer orders already received are summarized in Table 2: Table 2: Order requirements -
Type of Sauce Orders (pounds) Original 10000 Pineapple 3000 Hot & Spicy 5000
Because demand is running high, CJ foods, Inc., expects to receive many more orders than can be satisfied. CJ foods, Inc., is committed to using the available ingredients to maximize profit over the next season.
Using the information given above, perform a linear programming analysis of the CJ foods, Inc. product ingredient problem. Develop a case study report (at least 10 pages excluding table, results, equations, and graphs, etc.) to advise the President of CJ food, Inc. on the following issues (at the minimum):
A. Optimal production for each type of sauce in the next season
B. Is the purchase of additional pounds of each type of ingredients beneficial?
C. Which is more beneficial to CJ foods, Inc? - an increase or a decrease in the order requirement for each type of product?
Problem Definition
What indicates there might be a problem.
losing money market share declining customers are waiting too long for service problem defined by the client data
How is problem defined:
one of Construction (how a thing is structured), or one of Performance (how a thing behaves)
Data Collection
How the data is collected
Point of purchase Survey Questionnaire Unknownthis could present problem, explain in great detail.
Where is the data stored? Was the data transferred into one format, if so which one and why.
Model Development
How does it represent the real problem accurately? Does the variables represented as a linear (straight-line) function or a nonlinear (curved) function. What are the constraint(s) (capacity)?
Upper, Maximum, Minimum or none Construction or Performance
Is the model GOOD
Is it easy to solve. Is it easy to understand?
Model Verification
How is the model verified?
Using the current company data can the model resolve the current situation? Can the model produce a reasonable approximation of the companys situation using a similar dataset to get an output from the model which is reasonable?
One common approach is to use extreme values of the inputs to determine whether the outputs behave as they should. For queuing models, using extremely large service rate or a service rate just barely above the arrival rate
Does the model reduce uncertaintyhow?
Optimization and Decision Making
Optimization of an objective
Maximizing profit Minimizing cost. What optimization solution algorithms
What is available? The process use to eliminate the inappropriate ones.
Excels Solver is used on a daily basis to solve linear optimization models Heuristic methods (good solutions guided by common sense. A heuristic is a solution method that is trial and error to achieve a good, but probably not optimal solutionif this method is used it must be a defendable position.
Model Communication
Present the model in terms which nonmathematical individuals can understand Is this nonmathematical position presented throughout the written modeling process and not just toward the end? Is the model as intuitive and user friendly? Is there sufficient graphics representation to supplement the written text? Is there the ability for what-if questions to get quick answers that is easy to understand?
Model Implementation
Model demonstration
User-friendly Excel front end
Tinning schedule
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