A company makes three types of candy and packages them into three assortments. A

Question

A company makes three types of candy and packages them into three assortments. Assortment I contains 4 sour, 4 lemon, and 12 lime candies and sells for $9.40. Assortment II contains 12 sour, 4 lemon, 4 lime candies and sells for $7.60. Assortment III contains 8 sour, 8 lemon, and 8 lime candies and sells for $11.00 Manufacturing costs per piece of candy are .20 for sour, .25 for lemon, and .30 for lime. They can make 5,000 sour, 3,800 lemon, and 5,400 candies weekly. How many boxes of each type should the company produce each week in order to maximize its profit? What is the maximum profit?

Explanation / Answer

We will solve the problem using excel solver:

Decision Variables: Number of each type of assortment to be produced.

Constraints:

-Number of assortments should be a positive integer.

-Consumption of any candy in making of assortments < Production Capacity for that candy candy

Objective function:

Profit to be maximized = Revenue - cost

Please find below the google drive link for the excel sheet (solver)-

https://drive.google.com/open?id=1wrF3fZY3vyzRmHBNjpZv3dgPaybDj0lU

The answer we get after using the solver is:

Type 1 assortment = 200

Type 2 assortment = 150

Type 3 assortment = 300

Profit = 2750 $

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