The Department of Navy has been downsizing and must find costsavings opportunities to meet mandated congressional budget cuts.One suggestion under consideration is to change the makeup of thecontent of Navy sea rations, the canned food supplies containingcertain minimum daily requirements (MDR) of Vitamin A, Vitamin D,iron, and other nutrients, which combat troops carry into battle.The current supplier of Navy sea rations is Texfoods. A two-ounceportion of their product supplies 20% of the required amount ofVitamin A, 25% of the MDR of Vitamin D, and 50% of the requiredamount of iron. Each two-ounce portion cost the Navy $0.60. Becauseall minimum standards for nutrient must be met in each serving, thecurrent sea ration container must contain 10 ounces of the Texfoodsproduct (to meet the MDR of Vitamin A). This cost the Navy $3.00 (5* $0.60 = $3.00) per serving. A new supplier, Calration, is pushingthe Navy to switch to their product. A two-ounce portion ofCalration cost $0.50, a saving of $0.10 per two-ounce portion. Atwo-ounce portion of Calration provides 50% of the MDR for VitaminA, 25% of the requirement for Vitamin D, but only 10% of the MDRfor iron. If a switch is made to Calration the sea ration containerwould have to contain 20 ounces in order to meet the MDR for iron.The cost to the Navy would be $5.00 (10 * $0.50) per serving. Inyour new position as Chief Procurement Officer, Northern FleetCommand you suggested mixing the two products might meet thenutrient standards at a lower cost than the current $3 per serving.While the Navy has always prided itself on the quality of foodsserved, taste has not been a worry for Congress; hence, mixing therations, either by combining them or by packing a portion of each,is an acceptable alternative. You have been given instructions toevaluate the data.
Prepare a report for congress that recommends the number oftwo-ounce portions of Texfoods and Calrations to include in asingle serving of sea rations that will provide the MDR of VitaminsA and D and iron (it is not necessary to know the MDR of theseitems [Why?]). Congress is interested in the preserving cost ofyour serving and the Navy might be interested in the total weightof the serving (Why?). Senator Joe Ask Questions will want to knowif your proposed mixture supplies an excess of either Vitamin A, D,or iron. Also, Senator Meg Curious will want to know what mighthappen if Texfoods or Calration changes their pricing; does yourproposed mixture remain the same. Address your report to Members ofCongress, Naval Food Committee. Be sure to follow the quantitativeanalysis approach in your report.