Question: A walkthrough of creating the linear programming model would be greatly useful. The Local Candy Company manufactures five different lines of candy, and it takes

A walkthrough of creating the linear programming

A walkthrough of creating the linear programming model would be greatly useful.

The Local Candy Company manufactures five different lines of candy, and it takes five different ingredients to make these candies. The production facility is preparing to shut down for approximately one month to upgrade equipment and perform maintenance. The problem is that they have an inventory of perfectly good ingredients in stock and would like to make one more production run before the shutdown. If the ingredients are not used, they must be discarded. The shop foreman estimates that there are enough ingredients to make about 200 packages of each of the five candy lines. Doing so will yield a profit contribution of $1,080. Can you come up with a better product mix for this last production run before the shutdown? The Problem The five candy lines, as well as their associated profit contribution and resource requirements are given below: Ingredients (Pounds Per Package) Light Sugar Package Chocolate $1.00 0.20 $0.70 $1.10 $2.00 Goo-Chew $0.60 1.10 0.50 Product Profit per Carmel Nuts 2-U Bite O'Heaven Chocochunk Diet-Buster Dark Chocolate 0.80 0.50 1.00 2.00 0.10 0.10 0.10 0.20 0.30 0.40 0.60 1.30 0.05 0.20 0.30 0.30 0.70 Assorted Nuts 0.70 0.10 0.90 1.50 0.00 The available inventory of ingredients is given below: Ingredient Dark Chocolate Light Chocolate Sugar Caramel Nuts Amount on Hand 1,411.0 149.0 815.5 466.0 1080.0 Develop a linear programming model, using the Simplex LP Engine in Excel, to identify the production numbers for each line of candy that will, in turn, maximize profit. Our client understands that a linear programming model will likely provide answers in fractions of a package but, given the quantity of items produce, feels that it is acceptable to round to the nearest whole package

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!