89° is a bakery located in a busy downtown area. It is very popular and there is nearly always a line waiting to buy the delicious pastries, candies and cookies. It is not at all uncommon for some of the more popular confections to be sold out well before the late afternoon coffee rush. Recently, droughts in India, China and Thailand have decreased the world supply of mangos by nearly 50%. It has become difficult for 89° to get enough mangos for its mango-raspberry croissants, mango petit fours, and mango-dark chocolate chip cookies.

Since the shortage is expected to last for only 6 months, the firm is reluctant to completely discontinue its mango line. It is expected that all mango products will be able to return to full production by next June.

The accounting department conducted the appropriate analysis and produced the following daily production plan for the products that require mangos:

12 dozen petit fours (this meets demand for petit fours)

6 dozen croissants (this meets nearly ¾ of the demand for croissants)

0 dozen cookies

The production department provides the following data for the daily production plan before the shortage:

13 dozen petit fours

5 dozen croissants

16 dozen cookies

Sales tells you that croissants are nearly always the first of the three products to sell out. They are generally all gone by 3:00. Petit fours rarely sell out, although they sometimes do. Unlike croissants, the petit fours can be held over a day or two. Cookies nearly always sell out by the end of the day.

Make a clear recommendation to management about how to proceed. You may assume that alternative sources of mangos have been explored and found to be nonexistent. Write clearly and concisely.

Answer rating: 100% (QA)

I would recommend to the management to maintain the production of the croissants as is the same with ... View the full answer