In: Operations Management
2. Salsa Aguilar, a small startup business located in Pennsylvania, produces salsas that are sold through Heisler’s Market, a local grocery store located in McMurray, PA. Salsa Aguilar makes two types of products: Original Salsa and Fuego Salsa. Essentially, the two products have different blends of whole tomatoes, tomato sauce, and chopped vegetables. The Original Salsa is a blend of 50% whole tomatoes, 40% tomato sauce, and 10% chopped onions and jalapenos along with a proprietary spice blend. The Fuego Salsa, has a thicker and chunkier consistency, consists of 70% whole tomatoes, 10% tomato sauce, and 20% chopped onions and jalapenos, along with a proprietary spice blend. Each jar of salsa produced weighs 12 ounces. For the current production period, Salsa Aguilar can purchase up to 200 pounds of whole tomatoes, 150 pounds of tomato sauce, and 85 pounds of chopped onions and jalapenos; the price per pound for these ingredients is $1.00, $0.75, and $0.60, respectively. The cost of the spices and the other ingredients is approximately $0.15 per jar. Salsa Aguilar buys empty glass jars for $0.03 each and labeling and filling costs are estimated to be $0.02 for each jar of salsa produced. Salsa Aguilar’s contract with Heisler’s Market results in sales profit of $3.00 for each jar of Original Salsa and $3.25 for each jar of Fuego Salsa.
| Ingredient | |||||
| Amount | Price | Cost by jar | |||
| Product mix 12 oz jars | Purchased | per lb | TOTAL | size | |
| Type of Constraint | O F | 1lb = 16 ounces | |||
| Whole tomatoes | 50% 70% | 200 | $1.00 | $200.00 | $266.67 |
| Tomato Sauce | 40% 10% | 150 | $0.75 | $112.50 | $150.00 |
| Onion & Jalapeno | 10% 20% | 85 | $0.60 | $51.00 | $68.00 |
Letting
O = number of jars of Original Salsa sold
F = number of jars of Fuego Salsa sold
Leads to the formulation of the linear program as follows. The RHS ranges are simply the total ounces of each ingredient and the LHS ranges reflect the quantity in ounces of each ingredient that goes into each jar. Note that the pricing information here is not relevant to our analysis, since we are considering only the net profit for each jar:
Max 3O + 3.25F
s.t.
6O + 8F ≤ 3200 Whole tomatoes
5O + 1F ≤ 2400 Tomato Sauce
1O + 2F ≤ 1360 Chopped Onions and jalapenos
O, F ≥ 0
The computer solution is shown in figure below.
| Cell | Name | Final Value | Reduced | Objective | Allowable | Allowable |
| Cost | Coefficient | Increase | Decrease | |||
| $B$15 | Jars Produced O | 492.7536232 | 0 | 3 | 10 | 0,678571429 |
| $C$15 | Jars Produced F | 28.98550775 | 0 | 3.25 | 0.95 | 12 |
| Cell | Name | Final Value | Shadow | Constraint | Allowable | Allowable |
| Price | R.H. Side | Increase | Decrease | |||
| $B$20 | Whole tomatoes LHS | 3200 | 0.36231884 | 3200 | 2297.1429 | 200 |
| $B$21 | Tomato Sauce LHS | 2400 | 0.17210145 | 2400 | 160 | 1942.857143 |
| $B$22 | Onion & Jalapeno LHS | 660.8695652 | 0 | 1360 | 1E + 30 | 699.1304335 |
In: Operations Management
What clauses are included in a commercial real estate sales contract that do not appear in a residential contract?
In: Operations Management
Should a company identify and formally acknowledge its high-potential managers or should it be kept secret? Should managers know they are considered high-potential managers? Explain your position
answer in own words and include citations and real information. NOT just opinion
In: Operations Management
in 200 words
considering today's financial climate, how likely is it that
Southwest Airlines could aquire the capital necessary to support an
aggressive value enhancement strategy? from where would that
capital originate? compared to current interest rates, what do you
believe is a realistic interest rate Southwest might incur? which
of the liquidity ratios ( current ratio, quick ratio, inventory to
net working
capital) will be impacted by the influx of capital, if
borrowed?
cite references
In: Operations Management
Deliveroo and TaskRabbit are smaller examples of:
A Platforms that have launched the sharing economy
B Platforms that disrupted vertically integrated mainframe industry.
C Platforms that disrupted the publishing industry
D None of the above
In: Operations Management
Construct a SPACE matrix for Ford Motor Company and explain each factor. Prepare tables and charts.
In: Operations Management
For this assignment, describe the legal issue(s), discuss the applicable rules of law, explain how to minimize any legal risks, list any additional facts that would help in making the decision, and resolve the dispute (who wins and why).
The Case
April 28, 2017: Northeast Financing Company sent a commitment letter to Cloister Dairy offering to loan Cloister $900,000 at 10.25 percent interest; the letter provided that acceptance must be in writing within seven days and must be accompanied by a $20,000 letter of credit or cashier’s check.
May 15, 2017: The president of Cloister Dairy sent a letter of acceptance to Northeast along with a check.
May 21. 2017: Northeast cashed the check, which went through standard company processing.
Northeast claims there is no contract. Is there a contract? What rules of law apply?
Is this contract required to be written to be enforceable? Explain.
In: Operations Management
Explain the different legal options to address a bank teller involved in a check cashing scheme and why or why not the case should involve law enforcement.
In: Operations Management
Sweetland Sugar &Co. produces cane sugar in its three plants in Tampa, Mobile, and Houston It has four distribution centers in Charlotte, Kansas City, Indianapolis, and Flagstaff. These distribution centers serve five major markets, New York, Chicago, St. Louis, Las Vegas, and Seattle. The capacities of each plant, demands of each market and the transportation costs of sending a ton sugar from a plant to distribution center and from a distribution center to a market are given in the tables below. The company seeks to develop a plan to minimize transportation costs.
a) Determine the objective function and constraints.
b) Find the minimum cost and the amounts of sugar sent from each plant to distribution centers and from each distribution center to markets using Excel Solver.
|
From Plants |
To Distribution Center |
Supply (Tons) |
|||
|
Charlotte |
Kansas City |
Indianapolis |
Flagstaff |
||
|
Tampa |
$13 |
$17 |
$18 |
$25 |
20,000 |
|
Mobile |
$16 |
$15 |
$15 |
$22 |
18,000 |
|
Houston |
$18 |
$13 |
$17 |
$18 |
25,000 |
|
From Distribution Centers |
To Markets |
||||
|
New York |
Chicago |
St. Louis |
Las Vegas |
Seattle |
|
|
Charlotte |
$16 |
$13 |
$12 |
$22 |
$25 |
|
Kansas City |
$20 |
$11 |
$6 |
$15 |
$18 |
|
Indianapolis |
$10 |
$8 |
$8 |
$17 |
$19 |
|
Flagstaff |
$25 |
$18 |
$15 |
$8 |
$15 |
|
Demand (tons) |
15,000 |
12,000 |
9,000 |
14,000 |
13,000 |
In: Operations Management
in 200 words
what would be the risks of forming a strategic alliance in terms of Southwest Airlines profitability ratios ? which of the 5 ratios ( return on total assets, return on stockholders equity, return on common equity, operating profit margin, net profit margin) is most likely to reveal immediate information for analysis of the alliances effectiveness?
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In: Operations Management
In: Operations Management
What is a contract? Define and list the basic requirements for a contract.
In: Operations Management
In: Operations Management
international business
What are some of the most important considerations we should evaluate to best configure our production and supply chain operations.
Provide specific details for each consideration
In: Operations Management