Ruff Makes Dog Food Out of Chicken and Grain

question 80

Essay

Ruff makes dog food out of chicken and grain. Chicken has 10 grams of protein and 5 grams of fat per ounce, and grain has 2 grams of protein and 2 grams of fat per ounce. A bag of dog food must contain at least 200 grams of protein and at least 100 grams of fat. If chicken costs 25 cents/ounce and grain costs 1 cents/ounce, how many ounces of each should Ruff use in each bag of dog food in order to minimize cost

__________ oz of chicken and __________ oz of grain.

What are the shadow costs of protein and fat

__________ cent(s) per gram of protein and __________ cent(s) per gram of fat.

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Definitions:

Finished Products

Goods that have completed the manufacturing process and are ready for sale to customers.

Materials Handling

The movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, consumption, and disposal.

Pull Systems

A method of inventory control in which production is based on customer demand rather than forecasted demand, thereby reducing waste in the system.

Inventory Levels

The quantities of goods and materials kept on hand by a business to meet demand, production, and operational needs, essential for effective inventory management.