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The Cj Foods, Inc. Essay

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This case study views the CJ Foods, Inc. company headquarters in South Korea. CJ Foods make three types of sauces that they sell in grocery stores located in East Asia. The three types of Korean barbeque sauces are: Original, Pineapple, and Hot &Spicy. These sauces are made by mixing different percentages of five ingredients, and these ingredients include: beef, bean, pineapple, hot pepper, and sugar. For the original sauce the ingredients are twenty-seven percent beef, forty-seven percent bean, eleven percent hot pepper, and fifteen percent sugar. The pineapple sauce consists of ten percent beef, twenty-five percent bean, fifty percent pineapple, ten percent hot pepper, and five percent sugar. The hot and spicy sauce consists of fifteen percent beef, twenty percent bean, forty percent hot pepper, and twenty-five percent sugar. The profit contribution per pound for the original sauce is $1.55, for the pineapple sauce it is $2.10, and for the hot and spicy sauce it is $2.35. The case study is asking the reader to create a linear programming model, that will allow the company to use the available ingredients to maximize profit. The problem was identified by the data, because the cost of ingredients is not included in their profit analysis. The cost of the ingredients varies greatly, because of the commodity market. With this case study, we are trying to find the optimal production for each sauce, is the purchase of additional pounds of each type of ingredients beneficial,

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