Seahawk Enterprise LLC produces four types of cereals: the Loops, the Mix, the Chocos and the Sprouts. The problem it faces is to schedule two shifts of production during the last quarter of the calendar year. the limiting resource is the availability of the cooking machines. The four cereals require different amounts of time at cooking, as tabulated below.

Cereal	Loops	Mix	Chocos	Sprouts
Time Unit / Box	4.5	5	5.5	6

A sales forecast is available, breaking down predicted sales (in hundred thousands) by cereal type and by month.

Sales	Jul	Aug	Sep
Loops	8	7	6
Mix	18	16	18
Chocos	4	15	15
Sprouts	6	5	8

In addition, the number of hours of cooking time (in hundreds), for each shift and for each month, is also known.

	July	July	Aug	Aug	Sep	Sep
Shift	1	2	1	2	1	2
Hours	110	100	130	120	120	115

The labor cost of operating the cooking machines is $10 per hour during the first shift and $12 per hour during the second shift. The other relevant cost is storage: It costs $1 per month for storage and handling at the warehouse, regardless of the cereal type. This cost is incurred when the available inventory is more than the demand in the month when it occurs.
1. What production plan will minimize cost and meet demand at Seahawk LLC?

Answer rating: 100% (QA)

The production plan that will minimize cost and meet demand at Seahawk LLC is as follows July Shift ... View the full answer