CONNECT F/OPERATIONS MGMT
CONNECT F/OPERATIONS MGMT
14th Edition
ISBN: 9781264344963
Author: Stevenson
Publisher: INTER MCG
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Chapter 19, Problem 12P

The manager of the deli section of a grocery superstore has just learned that the department has 112 pounds of mayonnaise, of which 70 pounds is approaching its expiration date and must be used. To use up the mayonnaise, the manager has decided to prepare two items: a ham spread and a deli spread. Each pan of the ham spread will require 1.4 pounds of mayonnaise, and each pan of the deli spread will require 1.0 pound. The manager has received an order for 10 pans of ham spread and 8 pans of the deli spread. In addition, the manager has decided to have at least 10 pans of each spread available for sale. Both spreads will cost $3 per pan to make, but ham spread sells for $5 per pan and deli spread sells for $7 per pan.

a. Determine the solution that will minimize cost.

b. Determine the solution that will maximize profit.

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