Maximize profits, math, Marketing Management

The Nosmell Nutrient Compnay has placed an order for the coming month for 500 tons of nitrate, 800 tons of phosphate, and 1,200 tons of potash. The company blends these ingredients together with certain inert ingredients (that are available in unlimited supply) to make three popular fertilizer mixes that is sells to retailers around the country. Their ovjective is to maximize profits in the coming month.
The three basic fertilizers are 5-10-5, 5-10-10, and 12-10-5, the numbers representing the percentage (by weight) of nitrate, phosphate, and potash in each of the mixes. The remainder of the mixture is made up of the inert material that is available in unlimited supply. The cost of the fertilizer is (per ton): Nitrate = $280, Phosphate = 90, Potash = 179, and Inert ingredients = $20. Costs of mixing, packaging, and selling are identical for all three mizes and amount to $25 per ton. Prices for the fertilizer are (per ton): 5-10-5 = $80, 5-10-10 = 100, and 12-10-5 = $120. In addition, there is a sales commitment to deliver 400 tons of 5-10-5 from the current order.
a. Express this problem as an algebraic set of equations.
b. Set up and solbe the problem using Excel. You may use either Solver or QM.
c. What is the restrictive ingredient?
d. What is the impact if there is 10% more of this ingredient available?
e. Suppose that it costs 25% more for the additional quantity of this ingredient. How will that affect the optimal solution?
f. What are the management implications of using this technique?
Posted Date: 3/3/2012 8:36:59 PM | Location : United States







Related Discussions:- Maximize profits, math, Assignment Help, Ask Question on Maximize profits, math, Get Answer, Expert's Help, Maximize profits, math Discussions

Write discussion on Maximize profits, math
Your posts are moderated
Related Questions
Q. Selection of an advertising agency by Image of Agency? Image of Agency:- Prior to selecting the ad-agency advertiser must enquire about its integrity, image, its ethical s

How is Marketing Customer Focused? It is the Nature of Marketing. Marketing tends to assure and delight customer. The functions of marketing should be directed and focused at t

How is building a brand in a business-to-business context different from doing so in the consumer market?

Question 1 Describe the stages in consumer decision making process Question 2 Define Product line and its strategies Question 3 Write a short notes on Ste

. How are Indian customers visiting Shoppers’ Stop any different from customers of developed western countries?


define marketing .its importance

Relationship Marketing This approach is used to marketing emphasizes the importance of personal relationship building with all parties among consumers, suppliers and distributo

Q. Support Media used in advertisement? Support Media: - Message is legible, brief written in bold letters attractive, eye-catching and it must depict the brand name. It has

what is test marketing ? Explain various approaches that are followed by FMCG company in test marketing