Al-Marai Inc. produces various Traditional food products and
sells them to Al-Ameen Group, a chain of grocery stores located in
Bahrain and Saudi Arabia. Al-Marai, Inc. makes two pickle (Ajaar)
products: Indian style pickle and Bahraini style pickle in their
two main production units AL-Hidd Production Units - with capacity
of 800 units and Salmabad Production Unit with capacity of 1200
units. Essentially, the two products have different blends of whole
tomatoes, mango nectar, and whole lemons. The Bahraini style pickle
is a blend of 60% whole tomatoes, 40% mango nectar, and 21% whole
lemon. The Indian style pickle, which has a thicker and chunkier
consistency, consists of 82% whole tomatoes, 65% mango nectar, and
12% whole lemon. Each jar of pickle produces weighs 32 ounces. For
the current production period Al-Marai Inc. can purchase up to 550
pounds of whole tomatoes, 300 pounds of mango nectar, and 145
pounds of whole lemon. The price per pound for these ingredients is
SAR9.5, SAR 12.5, and SAR 4.0 respectively. The cost of the spices
and the other ingredients is approximately SAR 3.5 per jar.
Al-Marai buys empty glass jars for SAR 0.25, and labeling and
filling costs are estimated to be SAR 0.5 for each jar of pickle
produced. Al-Marai contract with Al-Ameen group results in sales
revenue of SAR 12.5 for each jar of Indian style pickle and SAR
14.5 for each jar of Bahraini style pickle. To maximize the profit
how many of the jars of Indian style pickle and Bahraini style
pickle should be produced.
Al-Marai Inc. produces various Traditional food products and sells them to Al-Ameen Group, a chain of grocery stores loc
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