Exhibit 4 - Resource Allocation Happiland is dealing with some capacity challenges in their candy division. They currently produce three types of sour candies, Sugarbombs, Cherrysqueezes, and Sourblasters. They all use the same type of sour flavouring, "Xsour", and there have been challenges getting that flavouring. The company is unsure of which to produce, and so have been basing their production on demand numbers (ie Sugarbombs first then the other two). The Xsour costs $5 per KG and Happiland can only procure 245 KG of Xsour. They must produce a minimum of 100 bags of each type of candy. They are unsure how to proceed to determine the optimal production structure subject to these constraints. Requirement: Provide the optimal production schedule for the candy division. Sugarbombs Cherrysqueezes Sourblasters Selling price per bag $5.50 $4.50 $7.00 Demand (in bags) 2000 1000 1000 Variable costs/bag 4.00 3.50 4.50 Fixed costs/bag .75 .50 .65 KG of Xsour per bag 0.05 0.25 0.10 Minimum bags 100 100 100 produced Requirement: Provide the optimal production schedule for the candy division.

Exhibit 4 - Resource Allocation Happiland is dealing with some capacity challenges in their candy division. They currently produce three types of sour candies, Sugarbombs, Cherrysqueezes, and Sourblasters. They all use the same type of sour flavouring, "Xsour", and there have been challenges getting that flavouring. The company is unsure of which to produce, and so have been basing their production on demand numbers (ie Sugarbombs first then the other two). The Xsour costs $5 per KG and Happiland can only procure 245 KG of Xsour. They must produce a minimum of 100 bags of each type of candy. They are unsure how to proceed to determine the optimal production structure subject to these constraints. Requirement: Provide the optimal production schedule for the candy division. Sugarbombs Cherrysqueezes Sourblasters Selling price per bag $5.50 $4.50 $7.00 Demand (in bags) 2000 1000 1000 Variable costs/bag 4.00 3.50 4.50 Fixed costs/bag .75 .50 .65 KG of Xsour per bag 0.05 0.25 0.10 Minimum bags 100 100 100 produced Requirement: Provide the optimal production schedule for the candy division.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter11: Linear Optimization Models

Section: Chapter Questions

Problem 20P: Refer to the Calhoun Textile Mill production problem described in Problem 19. Use the procedure...

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