Determine the optimal product mix for kirkman brothers

Assignment Help Operation Management
Reference no: EM13919584

Kirkman Brothers ice cream parlors sell three different flavors of Dairy Sweet ice milk: chocolate, vanilla, and banana. Due to extremely hot weather and a high demand for its products, Kirkman has run short of its supply of ingredients: milk, sugar, and cream. Hence, Kirkman will not be able to fill all the orders received from its retail outlets, the ice cream parlors. Due to these circumstances, Kirkman decided to make the most profitable amounts of the three flavors, given the constraints on supply of the basic ingredients. The company will then ration the ice milk to the retail outlets.

Kirkman collected the following data on profitability of the various flavors, availabil- ity of supplies, and amounts required for each flavor.

 

Profit /

Milk

Usage/GallonSugar

Cream

Flavor

Gallon

(gallons)

(pounds)

(gallons)

Chocolate

$1.00

0.45

0.50

0.10

Vanilla

$0.90

0.50

0.40

0.15

Banana

$0.95

0.40

0.40

0.20

Maximum available

 

200

150

60

Determine the optimal product mix for Kirkman Brothers. What additional resources could be used profitably?

Reference no: EM13919584

Questions Cloud

Target capital structure-what is its cost of common equity : Patton Paints Corporation has a target capital structure of 35.60% debt and 64.40%common equity, with no preferred stock. Its before-tax cost of debt is 7.80%, and its marginal tax rate is 30.00%. The current stock price is $22.00. The last dividend ..
Disadvantages of selling combination of stocks and bonds : The school you would like to attend costs $100,000. To help finance your education, you need to choose whether or not to sell your 1,000 shares of Apple stock, 1,000 EE Savings Bonds (with $100 denominations and 4.25% coupon rate) that are five years..
What would have been franklins average income tax rate : Suppose Franklin Corporation had pre-tax income of $300,000 in 2010 and the firm would have paid $100,250 in federal income taxes. What would have been Franklin’s average income tax rate?
Why culture­fair iq tests are not widely used : Question 1 Culture­fair IQ tests are not widely used because they Question 2 Most people assume there are more words in the English language that begin with the letter k than have the letter k in the third position. This may be because it is easie..
Determine the optimal product mix for kirkman brothers : Kirkman Brothers ice cream parlors sell three different flavors of Dairy Sweet ice milk: chocolate, vanilla, and banana. Determine the optimal product mix for Kirkman Brothers. What additional resources could be used profitably?
Investor stocks expected return exceeds : If in the opinion of a given investor a stock's expected return exceeds its required return, this suggests that the investor thinks
A cost can be either an asset or an expense : A cost can be either an asset or an expense.
Calculate the modified internal rate of return for project : Cost of project= $5,676.10 WACC= 11% Year 1 cash inflow $1000 year 2 cash inflow $1500 year 3 cash inflow $2000 year 4 cash inflow $3000 year 5 cash inflow $1600 Calculate the modified internal rate of return for this project.
Assuming the CAPM is correct : Stock A's beta is 1.5 and Stock B's beta is 0.5. Which of the following statements must be true, assuming the CAPM is correct. In equilibrium, the expected return on Stock B will be greater than that on Stock A. In equilibrium, the expected return on..

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd