Question: Only need problem 16 solved . #15 is for reference only. Please show all calculations so that I may understand it better. 15. The Nutmeg

Only need problem 16 solved . #15 is forOnly need problem 16 solved . #15 is forOnly need problem 16 solved . #15 is for

Only need problem 16 solved. #15 is for reference only. Please show all calculations so that I may understand it better.

15. The Nutmeg Corporation produces three different products, each in a 1-pound can: Almond-Lovers Mix, Walnut-Lovers Mix, and the Thrifty Mix. Three types of nuts are used in Nutmeg's products: almonds, walnuts, and peanuts. Nutmeg currently has 350 pounds of almonds, 150 pounds of walnuts, and 1,000 pounds of peanuts. Each of Nutmeg's products must contain a certain percentage of each type of nut, as shown in the following table. The table also shows the revenue per can as well as the cost per pound to purchase nuts. PERCENTAGE REQUIREMENTS PER CAN Almonds Walnuts Peanuts Revenue per Can Almond-Lovers Mix 80% 20% 0% $8,00 Walnut-Lovers Mix 20% 80% 0% $10,00 Thrifty Mix 10% 10% 80% $4,50 Cost per pound $4,50 $6,00 $3,00 a. Given Nutmeg's current stock of nuts, how many cans of each product should be produced to maximize revenue? b. Does the solution you developed in part (a) change if Nutmeg is interested in maximizing contribution margin (defined as revenue per unit raw material cost)? c. If 50 additional pounds of walnuts became available, how would your contribution-margin maximizing solution from part (b) change? 16. A problem often of concern to managers in processing industries is blending. The Nutmeg Corporation, from Problem 15, is considering a new product it intends to sell to active and health-concerned adults. This new product will be a 4-ounce package of nuts that conforms to specific heath requirements. First, the 4-ounce package can contain no more than 720 calories. It must deliver at least 20 grams of protein. Finally, the package must provide at least 15 percent of the adult daily requirement (ADR) of calcium and 20 percent of the ADR of iron. Nutmeg would like to use only almonds, walnuts, and peanuts in this new product. The following table provides nutritional data on each of these ingredients as well as their cost to Nutmeg. Ingredients Cost Calories per Ounce Grams of Protein per Ounce Percent ADR of Calcium per Ounce Percent ADR of Iron per Ounce per Ounce Almonds 180 6 8% 6% $0,28 Walnuts 190 4 2% 6% $0,38 Peanuts 170 7 0% 4% $0,12 a. Use linear programming to find the cost-minimizing number of ounces of each ingredient that Nutmeg should use in each 4-ounce package. What is the per- package cost of raw materials? b. The marketing department at Nutmeg insists that each package should contain at least 0.5 ounce of almonds, at least 0.5 ounce of walnuts, and no more than 1 ounce of peanuts. Does the solution developed for part (a) satisfy these new constraints? If not, use linear programming to find a solution that includes these marketing requirements. What is the new cost of raw materials? 2. Supplement D, Problems #16 - work both parts a) and b). For part b), if the solution in part a) does not satisfy the marketing requirements, just provide the additional constraints that are required for the marketing requirements to be satisfied. You do not need to resolve the linear programming

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!