- #1
XTerryX
- 1
- 0
I haven't touched this stuff for a while, and my friend ask me for help. I am kinda lost, any help would be great (profit equation, etc...) Thanks.
Maximizing Profit
The local Deli needs to maximize their profit on menu items based on labor rates.
The three main sources of labor include i) cutting vegetables, ii) assembling, and iii) garnishing.
Currently, the main menu items are submarine sandwiches and pasta salads, each yielding a profit of
$1.50 and $1.75, respectively. Given that each task has 11, 9, and 7 hours of total labor effort available,
and given the following table, answer the following questions.
Sub Sandwiches(by the dozen) Pasta Salads(by the dozen)
Cutting Vegetables 0.5 hours 0.5 hours
Assembling 0.5 hours 0.75 hours
Garnishing 0.5 hours 0.75 hours
(1) Given that the store is trying to maximize their profit based on how many submarine sandwiches and
pasta salads they should make, determine the objective function of this scenario.
(2) Expand the table, and fill in any other necessary information needed to solve this
maximization problem.
(3) Use Excel Solver and generate an answer report to solve the problem.
(4) Did you find an optimal solution to the problem? When does it occur?
(5) Suppose the Deli speeded up their time for garnishing by 10 minutes for making submarine
sandwiches. How would your solution change? What if it speeded up by 15 minutes for submarine
sandwiches and slowed down by 15 minutes for pasta salads?
Maximizing profit refers to the process of increasing the financial gain of a company or individual by finding the most efficient ways to generate revenue and minimize expenses.
Maximizing profit is important because it allows businesses to sustain themselves and grow over time. It also enables companies to invest in research and development, expand their operations, and create new jobs.
Some common strategies for maximizing profit include increasing sales, reducing costs, optimizing pricing, and improving efficiency in operations. Other strategies may include diversifying products or services, expanding into new markets, and strategic partnerships.
The potential risks of maximizing profit include sacrificing quality for quantity, damaging customer relationships, and creating a negative impact on the environment or society. It is important for businesses to consider ethical and sustainable practices when implementing profit-maximizing strategies.
Data analysis can provide valuable insights into consumer behaviors, market trends, and operational inefficiencies, which can help businesses make informed decisions that lead to increased profits. By using data, companies can identify opportunities for growth and make strategic adjustments to improve their bottom line.