Question: (3) An organization produces four different products using three different raw materials. Data on Sheet7 shows the selling price of each of the four products,
(3) An organization produces four different products using three different raw materials. Data on Sheet7 shows the selling price of each of the four products, raw material required for production, cost of raw materials, and the availability of raw materials. In addition, the marketing department has specified the minimum and maximum quantity for each of the products. Use this information to compute the optimal mix of products that should be produced and the corresponding profit. The company has the following two offers from suppliers: (a) A supplier is willing to supply 100 additional units of Material A at a cost of \(\$ 12\) per unit. Should the company consider this offer? If you answered yes, provide a detailed cost/benefit analysis. If you answered no, provide a clear justification for your answer. (b) Another supplier is willing to supply 200 additional units of Material C at a cost of \(\$ 8\) per unit. Should the company consider this offer? If you answered yes, provide a detailed cost/benefit analysis. If you answered no, provide a clear justification for your answer. (c) Going back to the original problem solution, the company would like to produce at least 250 units of each product. Add this requirement and evaluate its impact on the quantity produced and the profit.
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