The company would like to incorporate into the analysis its second major mixed nut line, the Hovel line. The Hovel mix can contain no more than 60 percent peanuts and no less than 20 percent almonds. Hovel sells for 50 cents per lb. Modify your model appropriately and solve.
What is the most scares resource? By how much the profit contribution will increase if one more pound of (i) peanuts was available. Similarly find if one more pound of (ii) almonds or (iii) walnuts was available.
c. Note in (b) that Hovel did not come into the optimal solution. What increase in the price of Hovel will it make it profitable?

Answer rating: 100% (QA)

Revised Model for Nutty Company with Hovel Mix Heres the revised model incorporating the Hov... View the full answer