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Q. 1. A soda producer makes also sells two products, Classic Cola also Diet Cola. If this organization spends X1 dollars on promotion of Classic Cola in a particular western city, it can sell 75 X1 0.5 12-packs of Classic Cola each week there. Moreover, if this organization spends X2 dollars on promotion of Diet Cola in a particular western city, it can sell 50X2 0.5 12-packs of Diet Cola each week there. Each 12-pack of Classic Cola sells for $3.00 also prices $0.80 to produce also ship to customers in this western city. Each 12-pack of Diet Cola sells for $3.50 also prices $1.00 to produce also ship to customers in this western city. A total of $10,000 is available for promotion each week in this city. The soda producer seeks to maximize its weekly profit. Formulate also solve an appropriate optimization model to help this soda producer identify the best promotional strategies for its two products.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M9311098

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