juicy juice manufactures different juices made entirely of various exotic nuts. Their primary market is China and they operate three plants located in Ethiopia, Tanzania, and Nigeria. You have been asked to help them determine where to manufacture the two newest juices they offer, Gingko Nut and Kola Nut. Each plant has a different fixed and variable cost structure and capacity for manufacturing the different juices. The fixed cost only applies if the plant produces any juice. Also, each juice has an expected demand. How much of each juice should be made at each plant in order to minimize total cost while meeting demand and adhering to plant capacity?

Cost/Unit Ginko Kola

Ethiopia ¥21.00 ¥22.50

Tanzania ¥22.50 ¥24.50

Nigeria ¥23.00 ¥25.50

Capacity Units/Month Fixed (¥/Month)

Ethiopia 425 ¥1,500

Tanzania 400 ¥2,000

Nigeria 750 ¥3,000

Demand Units/Month

Ginko 550

Kola 450

How much of each juice should be made at each plant in order to minimize total cost while meeting demand and adhering to plant capacity?

Answer rating: 100% (QA)

Answer Cost per unit Ethiopia Tanzania Nigeria Ginko 2100 2250 2300 Kola 2250 2450 2550 Capacity Per ... View the full answer