Case 1 Pom

Question 1

a) The product mix that will bring the Display Company to the highest profit on a daily basis is to produce 2520 high quality cups, 3780 convenient cups, 360 high quality trays and 356 convenient trays.

It means that the Display Company is not going to totally respect its long-term contracts for both kind of tray and that it will get some penalty cost, 142€ in total.

With this production plan, which we assure it is the most profitable, the Display Company will make a final profit of 3714€.

Table 1 : Optimisation results (in terms of quantities and profits)

|Products |Quantities |Missing quantities |Penalty costs |Cups used for trays |Cups sold independently |“Profits” |

| | | | | | | |

|FG-C1 |2520 |0 |0 |1800 |720 |504 |

|FG-C2 |3780 |0 |0 |1780 |2000 |1200 |

|FG-T1 |360 |40 |20 |- |- |1440 |

|FG-T2 |356 |244 |122 |- |- |712 |

|SA-LT |360 |- |- |- |- |- |

|Total: |  |284 |142 |  |  |3856 |

|Final profit : 3856-142 = 3714 € | | | | |

b) Through...