(Solution Download) Operations Management Problem


Abotte Products produces three products, A, B, and C. The company can sell up to 300 pounds of each product at the following prices per pound: A $10, B $12, C $20. Abotte purchases raw material at $5 per pound. Each pound of raw material can be used to produce either one pound of A or one pound of B. For a cost of $3 per pound, product A can be converted to 0.6 pounds of B and 0.4 pounds of C. For a cost of $2 per pounds, product B can be converted to 0.8 pound of product C. Determine how Abotte can maximize its profit.

 

Required:

 

 

1. Spreadsheet that has the appropriate formatting. I need to be able to enter zeros into your changing cells, solve, and get the optimal answer to earn maximum credit.

 

2. A one-page memo drafted to the decision maker. That memo must contain several alternatives and a clear recommendation. (You get alternatives from the sensitivity/what if analysis.) The memo must contain at least one graph or table that you create. Cutting and pasting input data or a table like the one I added above doesn?t count. I am expecting something like cost of Raw Material versus Production and Profit. Add something that you refer to as you explain your alternatives. Tables and graphs do not count toward the one page limit.

 







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