Phil Bert's Nuthouse Is Preparing a New Product,a Blend of Mixed

question 21

Essay

Phil Bert's Nuthouse is preparing a new product,a blend of mixed nuts.The product must be at most 50 percent peanuts,must have more almonds than cashews,and must be at least 10 percent pecans.The blend will be sold in one-pound bags.Phil's goal is to mix the nuts in such a manner that all conditions are satisfied and the cost per bag is minimized.Peanuts cost $1 per pound.Cashews cost $3 per pound.Almonds cost $5 per pound and pecans cost $6 per pound.Formulate this problem as a linear program.

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Definitions:

Service Department Allocations

The process of distributing the costs of service departments to producing or operating departments based on their usage of services.

Service Department Charge Rate

The rate at which internal service departments charge other parts of the same organization for the services rendered.

Accounting Department

The division within a company responsible for managing financial records, ensuring compliance with accounting standards, and producing financial statements.

Service Department Cost

Involves the expenses associated with the departments that do not directly produce goods but provide support or services to other departments within an organization.