# Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades oranges on a scale of 1

## Question:

Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades oranges on a scale of 1 (poor) to 10 (excellent). At present, Sunblessed has 100,000 pounds of grade 9 oranges and 120,000 pounds of grade 6 oranges on hand. The average quality of oranges sold in bags must be at least 7, and the average quality of the oranges used to produce orange juice must be at least 8. Each pound of oranges that is used for juice yields a revenue of \$1.50 and incurs a variable cost (consisting of labor costs, variable overhead costs, inventory costs, and so on) of \$1.05. Each pound of oranges sold in bags yields a revenue of \$1.50 and incurs a variable cost of \$0.70.

a. Determine how Sunblessed can maximize its profit.

b. Use SolverTable to determine how a change in the cost per bag of oranges changes the optimal solution.

c. Use SolverTable to determine how a change in the amount of grade 9 oranges available affects the optimal solution.

d. Use SolverTable to determine how a change in the required average quality required for juice changes the optimal solution.

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Related Book For

## Practical Management Science

ISBN: 978-1305250901

5th edition

Authors: Wayne L. Winston, Christian Albright

Question Details
Chapter # 4- Linear Programming Models
Section: Problems
Problem: 50
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