Case Problem 1 PRODUCT
TJ's, Inc., makes three nut mixes for sale to grocery chains located in the Southeast. The
three mixes, referred to as the Regular Mix, the Deluxe Mix, and the Holiday Mix, are made
by mixing different percentages of five types of nuts.
In preparation for the fall season, TJ's has just purchased the following shipments of
nuts at the prices shown:
Qpe of Nut
Shipment Amount (pounds)
Cost per Shipment
Linear Programming: Sensitivity Anabsk and Interpretation of Solution
The Regular Mix consists of 15% almonds, 25% Brazil nuts, 25% filberts, 10% pecans,
25% walnuts. The Deluxe Mix consists of 20% of each type of nut, and the Holiday
consists of 25% almonds, 15% Brazil nuts, 15% filberts, 25% pecans, and 20% walnuts
Customer orders already received are summarized here:
Because demand is
can be satisfied.
nuts not used will be given to a local charity. Even if it is not profitable to do so, TJ's p
dent indicated that the orders already received must be satisfied.
Perform an analysis of TJ's product-mix problem, and prepare a report for TJ's president
summarizes your findings. Be sure to include information and analysis on the following:
1. The cost per pound of the nuts included in the Regular, Deluxe, and Holiday
2. The optimal product mix and the total profit contribution
3. Recommendations regarding how the total profit contribution can be increase
additional quantities of nuts can be purchased
A recommendation as to whether TJ's should purchase an additional 1000 pou
5. Recommendations on how profit co
does not satisfy all existing orders
J. D. Williams, Inc., is an investment advisory firm that manages more than $120 million
in funds for its numerous clients. The company uses an asset allocation model that recom-
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