Question

a bakery produces cakes, cookies, and biscuits. the raw materials for these products are all the same (eggs, flour, water and sugar). the owner of the bakery would like to determine the best mix of products to produce with the materials currently in the bakery. what type of problem is this? multiple choice question. transportation problem cost-benefit-trade-off problem resource-allocation problem

Answer 1

The bakery owner is facing a resource-allocation problem, which involves optimizing the production mix of various baked goods to efficiently use available resources and maximize profitability or efficiency.

Step-by-step explanation:

The bakery owner is dealing with a resource-allocation problem. This involves determining the optimal production mix of cakes, cookies, and biscuits using the available raw materials (eggs, flour, water, and sugar) to achieve the maximum possible profit or efficiency.

To solve this problem, the owner would need to consider the cost of raw materials, the demand for each product, production times, and any other relevant factors. This scenario is a classic example of utilizing business economics to make strategic decisions that maximize resource utilization.