Q3Appukuttan Menon is the co-founder and CEO of Appukuttan Halva (AH) withheadquarters in Kuttanad, Kerala. AH manufactures two types of halva: (a) Death byHalva (DH) and (b) Travancore Halva (TH). The main ingredients of halva are: (a)corn flour, (b) sugar, (c) fruit and nut, and (d) ghee. The quantity of each ingredientrequired for the two types of halva for every one kilogram is given in Table 3

Table 3: Ingredients required for 1Kg for halva

Halva Type	Ingredients (in grams) required for 1kg of Halva
	Corn flour	Sugar	Fruit & Nut	Ghee
Death by Halva (DH)	500	750	150	200
Travancore Halva (TH)	500	625	100	300

The profit from DH and TH per kilogram are INR 45 and 50, respectively.The maximum daily demand for DH and TH are 50 kg and 20 kg, respectively.Appukuttan Menon is a big fan of the Japanese lean management concept andused JIT procurement. All the ingredients necessary for the daily production aredelivered on the day of production at 6.00 am and AH maintained no safety stock.The DH and TH are delivered to the customers (local retail stores in Kuttanad)from 12.00 Noon onwards every day. The suppliers of the ingredients are located inCoimbatore, which is about 300 km from Kuttanad.Due to some supply chain disturbance, suppliers of AH have informedAppukuttan Menon that they will be unable to supply the raw material on 25th January2017; however, the supply will be restored from 26th January onwards. To manage thesupply of halva on 25th January 2017, Appukuttan Menon decided to procure theingredients locally. His procurement manager George Varghese informed him thatsince AH uses specific brands of the ingredients, the availability of raw material islimited in the local market and is shown in Table 4.[20 Marks]

Table 4: Availability (in grams) of ingredients in local market

Corn flour	Sugar	Fruit & Nut	Ghee
20000	42000	10400	9600

1. Formulate the Problem
2. Use linear programming to find the optimal product mix for 25th January forAH that will maximize the profit for AH? Assume that there will be no change in theprofit of DH and AH due to procurement of ingredients from the local market.
3. Which constraints are binding?

Generate and Explain Sensitivity analysis report