Mgt 391 Quantitative Analyses Case 8-1

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University of Las Vegas Nevada

Alejandra Parra
Case 8-1: Product Mix
Managerial Report
04/04/2013

Product Mix Information

* TJ's Inc., makes 3 nut mixes for sale to grocery chains located in the Southeast. The three mixes are: Regular Mix, Deluxe Mix and Holding Mix. Each are made by mixing different percentages of these 5 nuts as follows:

| Almond| Brazil| Filbert| Pecan| Walnut|
Regular Mix| 15%| 25%| 25%| 10%| 25%|
Deluxe Mix| 20%| 20%| 20%| 20%| 20%|
Holiday Mix| 25%| 15%| 15%| 25%| 20%|

* Tj’s purchased the following shipments at the prices shown:

Type of Nut| Shipment Amount (Pounds)| Cost per Shipment| Almond| 
6000| $7500|
Brazil| 7500| $7125|
Filbert| 7500| $6750|
Pecan| 6000| $7200|
Walnut| 7500| $7875|

* Customer Orders and their Profit Contribution per Pound:

| Profit per Pound| Customer Orders (Pounds)|
Regular Mix| $1.65| 1000|
Deluxe Mix| $2.00| 3000|
Holiday Mix| $2.25| 5000|

Managerial Report

1) The cost per pound for Almonds is $1.25, of the Brazil Nuts is $0.95, of the Filberts is $0.90, of the Pecans is $1.20, and of the Walnuts is $1.05. The cost per pound of the Regular Mix is $1.03, of the Deluxe Mix is $1.07, and the Holiday Mix is $1.10.

Almonds| 7500/6000 = $1.25|
Brazil| 7125/7500 = $0.95|
Filberts| 6750/7500 = $0.90|
Pecans| 7200/6000 = $ 1.20|
Walnuts| 7875/7500 = $ 1.05|

Regular Mix: 0.15(1.25)+0.25(0.95)+0.25(0.90)+0.10(1.20)+0.25(1.05) = $1.03 Deluxe Mix:
0.20(1.25)+0.20(0.95)+0.20(0.90)+0.20(1.20)+0.20(1.05) = $1.07 Holiday Mix:
0.25(1.25)+0.15(0.95)+0.15(0.90)+0.25(1.20)+0.20(1.05) = $1.10

2) After obtaining the Objective Function and constraints we enter all the information into Microsoft Excel and use the solver feature to find the optimal solution for this Product Mix. The Optimal Product Mix is to produce 17500 pounds of the Regular...
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