Chapter 3; Case 1: Red Brand Canners (Page 153-155).
From the text, p.154, Discussion Questions 1 through 5.
Additional Discussion Questions 6 to 8 below should be answered using the "Sensitivity Report" of your LP solution.
6. Suppose that the Market Research Department feels it could increase demand for juice by 25,000 cases by means of an advertising campaign. How much should Red Brand be willing to pay for such a campaign? Justify.
7. Suppose an additional lot of 50,000 pounds of grade B tomatoes becomes available. How much should Red Brand be willing to pay for this lot of grade B tomatoes? Justify.
8. Suppose that the selling price of juice increased by 10 cents per case. Using the Sensitivity Report, tell whether the optimal production plan will change. Justify.
ADM2302 students are reminded that submitted assignments must be neat, readable, and well-organized. Assignment marks will be adjusted for sloppiness, poor grammar and spelling, as well as for technical errors. Plagiarism on assignments will not be accepted, and students are reminded thateach student in the group must sign the statement of integrity.
Solutions to the Case Study are to be prepared using the Report to Management format (refer to Course Outline). This assignment can NOT be hand written.