Question
Inventory Depletion The R. R. Bean Company produces, packages, and distributes freeze-dried food for the camping and outdoor sportsman market. R. R. Bean is ready
Inventory Depletion
The R. R. Bean Company produces, packages, and distributes freeze-dried food for the camping and outdoor sportsman market. R. R. Bean is ready to introduce a new line of products based on a new drying technology that produces a higher quality, tastier food, so they want to discontinue their current line. The basic ingredients of the current line are dried fruit, dried meat and dried vegetables. There are two products in the current line: the "Weekender" and the "Expedition." In its close-out catalog, the selling prices of the two products are $3.80 and $7.00 per package, respectively. Handling and shipping costs are $1.50 per package for each package, which are provided at no charge. The "Weekender" package consists of 3 ounces of dried fruit, 7 ounces of dried meat, and 2 ounces of dried vegetables. The "Expedition" package has 5 ounces of dried fruit, 18 ounces of dried meat, and 5 ounces of dried vegetables. R. R. Bean would like to deplete its inventories of "old technology" fruit, meat, and vegetables before introducing the new line. The current inventories are 10,000 ounces, 25,000 ounces, and 12,000 ounces respectively of fruit, meat, and vegetables. The book values of these inventories are $2000, $2500, and $1800. Any leftover inventory will be given to the local animal shelter at no cost or benefit to R. R. Bean. R. R. Bean is confident that it can sell all that it makes of the two products. What combination of current products should they produce to sell?
Please explain the constraints and solve using solver
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