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
Question 1: A. List and describe the brand-building steps? B. Define the term position and brand Image? C. Why is trust the primary co

Problem 1: Describe how services emerged in industrialisation and post industrialisation periods. Detail explanation on Growth of the Service Sector and Service Industrie

Q. Explain the different Objectives of the advertising? Answer: Introduction of Objectives is those end points towards which every activity of an organisation is oriented. Wit

What is Speciality Goods Due to some special characteristics of certain categories of goods people generally put special efforts to buy them. They are ready to buy these goods

Question 1: You work for a new regional airline that has recently started serving Mauritius. It is a low-cost budget airline. a. Explain what are the characteristics of ser

Brand loyalty: The starting point in understanding brand equity is the extent to which a brand enjoys customer loyalty. It is important to discriminate between habitual buying

The DD drinks company was founded over one hundred years ago by a deeply religious family and has been recognised as being a good employer ever since. The company has a long histor

Q :   Regress widget sales on time and add the (a) line, (b) linear equation and (c) R 2 (variance explained) to the graph you created in Q3.  Please explain the meaning of each.

Kinds of the packaging: 1.       Consumer package: it is a kind of the package which holds the required volume of product for the household consumption. For example, tooth

Last year Suki opened a gift shop in her small town. The town is a popular summer tourist attraction because it still retains the charm of a traditional village. Many of the buildi