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The manager of the deli section of a grocery superstore has just learned that the department has 130 pounds of mayonnaise, of which 60 pounds is approaching its expiration date and must be used. The mayonnaise is used for two items, a ham spread and a deli spread. Each pan of the ham spread requires 1.0 pounds of mayonnaise, and each pan of the deli spread requires 2.5 pound. Ham and deli spreads cost $3 and $4, respectively, per pan to make. The manager does not want to spend over $170 in material cost. The manager has received an order for hams spread and deli spread. He plans to make at least 14 pans of each spread available for sale given more orders expected. Each pan of ham spread is sold for $ 5 and each pan of deli spread for $7.

Use excel solver to find optimal production quantities for the profit generated by the sale of these two spreads.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92605311

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