6. A farmer wants to start growing broiler chickens on his farm. he realizes that he needs to start with 8000 birds. Each bird will feed a ratio of 8:20: 4 respective of their starter, grower and finisher. the price of starter is k570, grower 525 and finisher 490 per bag. assuming the birds will have a mortality survival of 90% and the total cost of the business is 20% the revenues generated from the sales of birds at k90 each. a. calculates the profit b. given the profit function of 20x-xy-1.5y^2+25y, calculate the profit c. compare the two profits calculated above and give a management decision of the farm

6. A farmer wants to start growing broiler chickens on his farm. he realizes that he needs to start with 8000 birds. Each bird will feed a ratio of 8:20: 4 respective of their starter, grower and finisher. the price of starter is k570, grower 525 and finisher 490 per bag. assuming the birds will have a mortality survival of 90% and the total cost of the business is 20% the revenues generated from the sales of birds at k90 each. a. calculates the profit b. given the profit function of 20x-xy-1.5y^2+25y, calculate the profit c. compare the two profits calculated above and give a management decision of the farm

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section7.3: Pricing Models

Problem 1P

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46. You are making several runs of a simulation model,each with a different value of some decision variable(such as the order quantity in the Walton calendarmodel), to see which decision value achieves thelargest mean profit. Is it possible that one value beatsanother simply by random luck? What can you do tominimize the chance of a “better” value losing out toa “poorer” value?
Palmer Jam Company is a small manufacturer of several different jam products. One product is an organic jam that has no preservatives, sold to retail outlets. Susan Palmer must decide how many cases of jam to manufacture each month. The probability that demand will be 7 cases is 0.10, for 8 cases it is 0.25, for 9 cases it is 0.45, and for 10 cases it is 0.20. The cost of every case is $50, and the price Susan gets for each case is $90. Unfortunately, any cases not sold by the end of the month are of no value as a result of spoilage. Based on the given information, Susan's conditional profits table for jam is: Demand 7 cases 8 cases 9 cases 10 cases Produce p=0.10 p=0.25 p=0.45 p=0.20 7 cases enter your response here enter your response here enter your response here enter your response here 8 cases enter your response here enter your response here enter your response here enter your response here…
Palmer Jam Company is a small manufacturer of several different jam products. One product is an organic jam that has no preservatives, sold to retail outlets. Susan Palmer must decide how many cases of jam to manufacture each month. The probability that demand will be 7 cases is 0.10, for 8 cases it is 0.25, for 9 cases it is 0.45, and for 10 cases it is 0.20. The cost of every case is $50, and the price Susan gets for each case is $90. Unfortunately, any cases not sold by the end of the month are of no value as a result of spoilage. Based on the given information, Susan's conditional profits table for jam is: Demand 7 cases 8 cases 9 cases 10 cases Produce p=0.10 p=0.25 p=0.45 p=0.20 7 cases enter your response here enter your response here enter your response here enter your response here 8 cases enter your response here enter your response here enter your response here enter your response here…