Question 1

7.5 points possible (graded, results hidden)

Monde Caf is a coffee roaster and retailer, holding most of the coffee market share in France. The summer just began, and their biggest branch located in Niza is getting ready for the peak season for their cold brews and iced teas starting in a few weeks.

The store management team meets to define how much of the raw materials and resources are required to meet the expected demand. You start by contacting Billy, from finance, and receive the following data:

Table1: Resources required per product

Product/Required resources per cup	Labor (Minutes)	Ice Machine (Minutes)	Large Cups(Units)
Hibiscus Iced Tea	6	5	1
Vanilla Cold Brew	8	6	1
Regular Cold Brew	5	3	1

Table 2: Resources Availability

Resources	Availability
Labor Hours	2 employees working on product preparation 300 minutes a day each.
Ice Machine	1 machine that operates 410 minutes a day
Large Cups	100 units

Table 3:Product Prices in Euros per unit

Product	Euros per Unit
Hibiscus Iced Tea	10
Vanilla Cold Brew	8
Regular Cold Brew	5

Table 4:Costs in Euros per unit of resource

Labor (Euros/Minutes)	Ice Machine(Euros/Minutes)	Large Cups (Euros/Units)
0.25	0.19	0.24

The store manager Ms. Walker asks you to calculate the store profit per day for these products with the provided information, considering that currently they produce and sell 10 Units of Hibiscus Iced Tea, 50 Units of Vanilla Cold Brew and 20 units of Regular Cold Brew.

What is the current profit?

Enter your answer with two decimal places. For example, if your answer is 23.245, you should enter 23.25 in the box below.

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The team is planning to invest in marketing to promote a combination of products that would maximize their profit. You decide now to find an optimized solution to this model. With the existing constraints, what would be the maximum profit Monde Caf would achieve considering it would sell everything it produces? Remember you cannot produce this product in decimals.

Enter your answer with two decimal places. For example, if your answer is 23.245, you should enter 23.25 in the box below.

submitted

How much of the available labor minutes would be required to achieve the maximum profit?

Round your answer to the nearest integer. For example, if your answer is 123.789, you should enter 124 in the box below.

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Question 2

5.0 points possible (graded, results hidden)

Due to the upcoming peak season, you have received a forecasted demand of 60 units of Hibiscus Iced Tea, 25 units of Vanilla Cold Brew and 15 units of Regular cold Brew. Elizabeth, in charge of operations, recommends adding another employee to the team and doing some improvements to the existing ice machine to expand its capacity to 500 minutes.

How many minutes of the Ice Machine would you be using under this scenario?

Round your answer to the nearest integer. For example, if your answer is 123.789, you should enter 124 in the box below.

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Would hiring a new employee be necessary for satisfying this forecasted demand? Select an option Yes No

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Question 3

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What would the profit be under Question 2 scenario?

Enter your answer in decimal form using two decimal places. For example, if your answer is 23.246, you should enter 23.25 in the box below.

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Question 4

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Based on the model you created in question 2, choose the correct option(s) below. Please, consider each statement separately.

None of the above.

All else being equal, a 5 units' demand increase of any product can be met only by having an increased availability of Large Cups and a second Ice Machine with same operating minutes as Q2.

All else being equal, a 5 units' demand increase of any product can be met by hiring a 4th employee and a second Ice Machine with same operating minutes as Q2.

All else being equal, a 5 units' demand increase of any product can be met only by buying a second Ice Machine with same operating minutes as Q2.