A Grocery Store Manager Must Decide How to Best Present

question 60

Multiple Choice

A grocery store manager must decide how to best present a limited supply of milk and cookies to its customers. Milk can be sold by itself for a profit of $1.50 per gallon. Cookies can likewise be sold at a profit of $2.50 per dozen. To increase appeal to customers, one gallon of milk and a dozen cookies can be packaged together and are then sold for a profit of $3.00 per bundle. The manager has 100 gallons of milk and 150 dozen cookies available each day. The manager has decided to stock at least 75 gallons of milk per day and demand for cookies is always 140 dozen per day. To maximize profits, how much of each product should the manager stock.
Which of the following is the objective function for the grocer's problem?

• A) Max P = 1.5M + 2.5C + 3B
• B) Min P = 1.5M + 2.5C + 3B
• C) Max P = 2.5M + 1.5C + 3B
• D) Max P = 2.5M + 3C + 1.5B
• E) Min P = 1.5M + 1.5C + 3B

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Definitions:

Decentralization

The process of distributing and delegating power away from a central authority within an organization to individual units or departments.

Information Technology

The use of computers, networks, and software to store, process, and transmit information digitally.

Decentralization

A management strategy where decision-making powers are distributed throughout the organization rather than being concentrated in a small group or at the top level.

Authority

The right or power assigned to an individual or organization to make decisions, command, or judge.