TJs Inc.

Case Report
EXECUTIVE REPORT

Background
TJs Inc. produces 3 different mixes of nuts for sale to grocery stores in the Southwest. In
preparation for the fall season, TJs has pre-purchased a set number of nuts for their mixes.

Objective
Maximize profit while fulfilling existing customer orders and maintaining proper ratios of nuts in
each respective mix.

Methodology
A Linear Mathematical Program was created.

Results

With restriction of filling existing orders

# of Pounds Produced
Regular 17,500
Deluxe 10,625 Total Profit
Holiday 5,000 $61,375

Without restriction
# of Pounds Produced
Regular 15,000
Deluxe 18,750 Total Profit
Holiday 0 $62,250

Recommendation
We recommend that TJs fulfill existing customer orders, for a total profit of $61,375

Rationale
By not fulfilling existing orders, TJs would be damaging customer relations. The 5,000 pounds
of Holiday mix that were ordered would not be delivered, which could have damaging long-term
effects.
MANAGERIAL REPORT

1. The cost per pound of the nuts included in the Regular, Deluxe, and Holiday mixes

Almond Brazil Filbert Pecan Walnut

$1.25/lb $0.95/lb $0.90/lb $1.20/lb $1.05/lb

2. The optimal product mix and the total profit contribution:

The optimal product mix for TJs Inc. would consist of:

Regular 17500(lbs)
Deluxe 10625(lbs)
Holiday 5000(lbs)

This would lead to a total profit contribution of $61,375

3. If more nuts could be purchased, walnuts and almonds would allow for an increase in the
optimal solution, given the constraints.

4. Yes, the $1,000 purchase of 1,000lbs almonds would lead to a profit increase of $4,958.33

5. If TJs does not have to focus on filling existing orders, they can increase profit to $62,250
(+$875) by eliminating the Holiday mix and focusing on the Regular + Deluxe mixes

*FOR DATA + FINDINGS, PLEASE SEE ATTACHED EXCEL REPORTS