Question

R 3 00 Semenary CHAPTER 4 Relevant information for Decision Making 4.27 Multiple Products and Resource Constraints, Sensitivity Analysis Wildlife Foods prepare L05 sells them to local pet stores, grocery stores, and wild bird stores. Two types of mixes have Flight Fancy and Multigrain. Flight Fancy generates a contribution margin of $12 per 5 contributes $9 per 50 kg. Because Wildlife Foods has been very thorough in its sterilization pro never germinates and grows. Therefore, it is a top seller, and the company can sell all the The seed is processed in three stages: mixing, sterilization, and packaging. The time requu batch of 100 bags of Flight Fancy and 5,000 kg of Multigrain (which is sold in bulk rather than bags Minutes Required Mixing Sterilization Packaging Flight Fancy 200 200 100 Multigrain 100 0 (sold in bulk) Minutes Available 6,000 12,000 4,500 ds prepares wild birdseed mixes and of mixes have been most successful: in of $12 per 50 kg bag, and Multigrain its sterilization process, the birdseed ompany can sell all the birdseed it produces. tion, and packaging. The time requirements for each IRED A. Using a spreadsheet program such as Excel Solver, find the optimal product mix, given the current constraints and contribution margins. B. Which constraints are binding? C. What happens if minutes available for mixing are doubled? Does another constraint become binding? What is the optimal product mix in this case? 28 Special Order The Cone Head House sells ice cream cones in a variety of flavours. Data for a recent we Revenue (1,000 cones @ $1.50 each) $1,500 - w innte 530 of flavours. Data for a recent week appear here:

Answer 1

Question No-1
Particulars	Flight Fancy	Multi Grain
Contribution for 50 Kg Bag	$                       12	$                 9
Contribution for 100 bags/500kgs	$                  1,200	$             900
Time Consumed in Mixing Department	200	100
No.of Batches can be Produced	30	60
Time Consumed for Sterilization Department	200	300
No.of Batches can be Produced	60	40
Time Consumed in packaging Dept	100	0
No.of Batches can be Produced	45	No Limit
Maximum no. of batches that can be produced	30	40
Contribution Margins	$                36,000	$       36,000
Question No-2
Constraints binding are
1. Minutes available in Mixing Department
2. Minutes available in Packaging Department
Question No-3
Particulars	Flight Fancy	Multi Grain
Contribution for 50 Kg Bag	$                       12	$                 9
Contribution for 100 bags/500kgs	$                  1,200	$             900
Time Consumed in Mixing Department	200	100
No.of Batches can be Produced	60	120
Time Consumed for Sterilization Department	200	300
No.of Batches can be Produced	60	40
Time Consumed in packaging Dept	100	0
No.of Batches can be Produced	45	No Limit
Maximum no. of batches that can be produced	45	40
Contribution Margins	$                54,000	$       36,000
Constraints binding are
1. Minutes available in Packaging Department