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Mr jude angelo is the manager of a beverage manufacturing company will be launching its new product of apple and orange juice drinks to be packed in bottles. The apple is sold for 5.25 per 0.75 liter-bottle, the orange for 4.00 per 1 liter-bottle. The production of the two juice drinks is quite different, starting from the fact that the apple fruits yioeld 7,500 liters per hectare, while the orange yield 10,000 liters per hectare. mr Angelo has contracted 200 hours of time on a bottling machine which can fill 200 bottles per hour. He estimates that 14 hours and 6.5 hours are required to produce 100 liters of apple and orange juice, respectively, for the work in the orchards and storage. His staff provide a total of 3,640 working hours and that the demand for the orange is limited to at most 25,000 liters. The juice drinks is ussually sold after one year, which means he has to think about storage capacity. The bottles are packed in 36-bottle cases and are sold to retailers. He measures his storage area and finds that the available storage is 69 cubic meters. One case of orange juice needs 0.0852 cubic meter, the apple juice needs 0.054 cubic meter smaller bottles. Mr Angelo wants to know how he can optimize his sales revenues?

Operation Management, Management Studies

  • Category:- Operation Management
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