Nuts Production Mix Problem Research Paper Example | Topics and Well Written Essays - 500 words

Nuts Production Mix Problem - Research Paper Example Assuming that the company can bought 1,000 pounds more of almonds from a supplier who overbought for $1,000, the additional profit contribution is $4,958 which is much more than the additional cost of almond. The new production mixes are presented on the table in the next page. If the ultimate objective is attain the highest contribution profit, then the company is better off not satisfying the existing orders. The company is better off with the production mix presented below. This production mix shows a contribution profit of $62,250 which is $875 higher than if the company satisfies the existing orders. This is so because the Holiday mix uses a lot of almond which is a scarce resource for the production mix. Of course, the quest for profit shouldn't be the end all, be all for the organization. The company also has to be socially responsible while doing business, and simply ignoring orders for higher gains is not in alignment with corporate social responsibility (Albareda 2008, p. 430).