TJ Inc. makes three nut mixes for sale to grocery chains located in the Southeast. The three mixes referred to as the Regular Mix, the Deluxe Mix, and the Holiday Mix, are made by mixing different percentages of five types of nuts.

In preparation for the fall season, TJ Inc. purchased the following shipments of nuts:

Type of Nut	Shipment Amount (pounds)
Almond	6000
Brazil	7500
Filbert	7500
Pecan	6000
Walnut	7500

The Regular Mix consists of 25% almonds, 10% Brazil nuts, 20% filberts, 25% pecans, and 20% walnuts. The Deluxe Mix consists of 20% of each type of nut, and the Holiday Mix consists of 15% almonds, 20% Brazil nuts, 20% filberts, 20% pecans, and 25% walnuts.

An accountant at TJ Inc., analyzed the cost of packaging materials, sales price per pound, and so forth, and determined that the profit contribution per pound is $1.65 for the Regular Mix, $2.00 for the Deluxe Mix, and $2.25 for the Holiday Mix. These figures do not include the cost of specific types of nuts in the different mixes because that cost can vary greatly in the commodity markets.

Customer orders already received are summarized here:

Type of Mix	Orders (pounds)
Regular	10,000
Deluxe	3,000
Holiday	5,000

Because demand is running high, TJ Inc. expects to receive many more orders than can be satisfied.

TJ Inc. is committed to using the available nuts to maximize profit over the fall season; nuts not used will be given to the Free Store. Even if it is not profitable to do so, the president of TJ Inc., indicated that the orders already received must be satisfied.

Managerial Report

Perform an analysis of the TJ Inc. product mix problem. Be sure to include information and analysis on the following:

1. The optimal product mix and the total profit contribution

2. Recommendation regarding whether this optimal product mix solution will change if the profit contribution per pound for Regular Mix has increased from $1.65 to $1.75.

3. Recommendations regarding whether and how the total profit contribution can be increased if additional quantities of nuts can be purchased.

4. In particular, the management team of TJ Inc. is wondering whether they should purchase an additional 500 pounds of pecans for $500 from a supplier who overbought. Will the total profit increase (and by how much) if they do it?

5. Recommendations on whether it would be advantageous for TJ Inc. to negotiate with the grocery chains a decrease in the Regular Mix requirement from the current 10,000 pounds to 9,000 pounds.

6. Recommendations on whether it would be advantageous for TJ Inc. to negotiate with the grocery chains an increase in the Deluxe Mix requirement from the current 3,000 pounds to 4,000 pounds.

For all the questions above, use Excels Solver Answer Report and Sensitivity Report.