Maximize profits, math, Marketing Management

Assignment Help:
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?

Related Discussions:- Maximize profits, math

Define channels of distribution according to stanton, Normal 0 ...

Normal 0 false false false EN-IN X-NONE X-NONE

MBA, Will the pricing and product policy of a multinational firm be differe...

Will the pricing and product policy of a multinational firm be different in a developed and an underdeveloped country? Justify your answer.

Test marketing & FMCG, explain the various approaches that are followed by ...

explain the various approaches that are followed by FMCG companies in test marketing.

Show the economics benefits of outdoor recreation, Question 1: The exte...

Question 1: The extensive use of outdoor recreational attractions based in natural areas has resulted into increased negative environmental and social impacts. Using local e

Segmentation, How the marketers use demographic. geographic, psychographic,...

How the marketers use demographic. geographic, psychographic, buying behavior to help to satisfy customers?

Assignment, Explain the various approaches that are followed by FMCG Compan...

Explain the various approaches that are followed by FMCG Companies in test marketing.

Examples of unfair trade practices, Q. Examples of Unfair Trade Practices? ...

Q. Examples of Unfair Trade Practices? (i) Advertisement concerning weight-loss-claims of any medicine without proper test.  (ii) Using the words 'Government Supported', 'Go

What is swot analysis?, SWOT Analysis is a strategic planning method used t...

SWOT Analysis is a strategic planning method used to assess the internal & external environment in which a company operates and competes. Internal environmental factors are classif

Case study, Should video game companies continue to alter their products to...

Should video game companies continue to alter their products to include other functions, such as email?

Brand management, what is upward and downward streching of brands

what is upward and downward streching of brands

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd