METHOD

Because of the delivery situation outlined in task 4, the manager of the store decided to look to other options to best use the supplies he has been sent. In this task calculations were performed to see which one type of nut mix was the most appropriate to make to use up as many of his nuts as possible.

From Task 4 we know that there are 1360kg of peanuts, 1260kg of cashews and 2000kg of macadamias.

CALCULATIONS

a) Making all Budget Mix

Case 1: We have 1360kg of peanuts, 1260kg of cashews and 2000kg of macadamias and endeavour to use up all 1360kg of peanuts in the order.

Peanuts (60%) Cashews (40%) Macadamias (0%)

If we use all 1360kg of peanuts If 1360kg is 60%, then 100% is 2266kg

2266 x 0.6

=1359kg (round down) 2266kg x 0.4

= 906.4

*…show more content…*

Peanuts (30%) Cashews (30%) Macadamias (40%)

If we use all 2000kg of macadamias 5000kg x 0.3

= 1500kg 5000kg x 0.3

= 1500kg If 2000kg is 40%, then 5000kg is 100%

5000 x 0.4

=2000kg

This situation cannot be used as there is less than 1500kg of both peanuts and cashews, so all macadamias cannot be used up.

i. If we only make Premium Mix from the nuts received in the order, we can make a maximum of 4200 1kg packets. ii. This situation would leave 100kg of peanuts and 320kg of macadamias left over from the order.

REASONABLENESS AND LIMITATIONS

Making the Premium Mix is the most reasonable thing to do because it involves the least wastage and uses up the least amount of storage space possible.

Some limitations to this scenario include:

- This model assumes all nuts can only be used in these particular mixes and cannot be sold individually or as part of any other nut mixes

- The model assumes all of the nut mix made will in fact be sold; there is a possibility that no one actually buys the Premium Mix and therefore it may be worth making other mixes as they may sell