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
Franchising This is a form of company in which a firm sells the rights to create its product or service to other service providers who necessary operate under the selling firm'

Why is green or environmental marketing important? Green marketing is important since the mankind has restricted resources upon the earth, along with that he/she should attem

Competition related segmentation: Hard core loyal: Hard core loyal are those customers who continue to buy the same brand over and over again. Newspaper readers, cigarette sm

Question: Dyson intends to launch its brand in Mauritius with the ambition to subsequently go regional. a. You work for a marketing consulting firm and have been asked to

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

Q. Show the Disadvantages of Support media ? 1) Detailed message can't be given by support advertising as passerbies' view the signboards are only for few seconds. 2) Someti


Q. What is Advertising Budget? Answer:- Quantitative appearance of future plan of activities prepared for fix period of time. Advertising budget is a monetary document that sho

Question 1: Describe the classification of retailer in detail. Definition of Retailer Classification of Retailer Question 2: Explain the four principal com

What is the working of final or last barrier to exchange in channels distribution? All problem are signifies the discrepancy of quantity and assortment within the exchange proc