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Nada Dairy is contracted to receive daily 60,000 kg of ripe tomatoes at 7 cents per...

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General Management

Nada Dairy is contracted to receive daily 60,000 kg of ripetomatoes at 7 cents per kg from which it produces canned tomatojuice, tomato sauce, and tomato paste. The canned products arepackaged in 24-can cases. A can of juice uses 1 kg of freshtomatoes, a can of sauce uses 1/2 kg, and a can of paste uses 3/4kg. The company’s daily share of the market is limited to 2000cases of juice, 5000 cases of sauce, and 6000 cases of paste. Thewholesale prices per case of juice, sauce, and paste are SAR 21,SAR 9, and SAR 12, respectively.

a. [2 Marks] Develop a mathematical model that determine theoptimum daily production program for the company.

b. [1 Mark] Solve it using software and show the results. c. [2Mark] If the price per case for juice and paste remains fixed asgiven in the problem, use sensitivity analysis to determine theunit price range that the company should charge for a case of sauceto keep the optimum product mix unchanged.

Answer & Explanation Solved by verified expert
4.0 Ratings (583 Votes)
aLet J S and P are thecases of JuiceSauce and    See Answer
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