Quantitative Analysis – Contribution per ounce

Quantitative Analysis – Contribution per ounce

There are three questions.

Question 1 is attached.

All must be done in excel and show models

#2 – A computer company manufactures two types of computers. Each type of computer will require assembly time, inspection time, and storage space. The amounts of each of these resources that can be devoted to the production of the computers is limited. The manager wants to determine the quantity of each computer to produce to maximize the profit generated by sales of these computers.

In order to develop a suitable model of the problem, the manager has met with design and manufacturing personnel. As a result of those meetings, the manager has obtained the following information:

	Type 1	Type 2
Profit per unit	$60	$75
Assembly time per unit	4 hours	10 hours
Inspection time per unit	30 minutes	20 minutes
Storage space per unit	3 cubic feet	3 cubic feet

The manager has also acquired information on the availability of resources. These daily amounts are:

Resource	Amount Available
Assembly time	100 hours
Inspection time	22 hours
Storage space	39 cubic feet

The manager also met with the firm’s marketing manager and learned that demand for the microcomputers was such that whatever combination of these two types of computers is produced, all the output can be sold.

a) What is the mix of computers that they should produce?

b) What profit do we expect this will result in?

c) What contraints are binding?

#3 A dietician has been asked by the athletic director of a university to develop a snack that athletes can use in their training programs. The dietician intends to mix two separate products together to make the snack. The following information has been obtained by the dietician:

		Contribution per ounce (g)
Nutrient	Minimum Amt Req(g)	Product A	Product B
Carbohydrates	20	2	5
Protein	12	6	1
Calories	450	90	50

Product A costs $.20 per ounce and Product B costs $.10 per ounce.

a) What is the optimal mix of Product A and Product B that minimizes the snack’s overall cost?

b) What is the cost per snack?

c) Are any requirements exceeded? If so, which ones and by how much?

d) What if the trainer also decided that the snack should also include at least 2 oz of both Product A and Product B. Reformulate and solve. What is the new mix and cost?