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Quantitative Analysis For Business

Quantitative Analysis For Business

Quantitative Analysis For Business

1.  Based on current cost information, what is the cost per pound of the nuts included in the Regular, Deluxe, and Holiday mixes?

2.  How much of each type of mix should be made using only the nuts already ordered and keeping in mind the President’s requirement to meet the initial demand for each type of mix?  What is the resulting optimized profit?

3.  Sometimes small amounts of certain types of nuts become available in secondary markets.  Which types of nuts should be pursued in order to increase profit?

4.  A supplier has offered us 1000 pounds of almonds for $1000.  Should these almonds be purchased?  If yes, how much would profits increase?

5.  A supplier has offered us 1200 pounds of filberts for $950.  Should these filberts be purchased?  If yes, how much would profits increase?

6.  The marketing department is proposing an upgrade to the packaging of the Holiday Mix that would decrease the profit contribution from $2.35 to $2.29 per pound.  Would the number of pounds of each type of mix be changed in the optimal solution?  (Note that the President would be impressed if you did not need to rerun Solver to answer this question)

7.  If the President’s requirement to meet the initial demand for each type of mix were eliminated would profitability be impacted?  If so, by how much?

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