Central Beverages is planning of introducing a nutritious beverage Super-sip which will come in three flavours mainly
Question:
Central Beverages is planning of introducing a nutritious beverage “Super-sip” which will come in three flavours mainly Orange, Mango and Banana. The management Accountant has provided the relevant information about the products below:
Ingredient constituents: percentage make-up per tonne
Emulsifiers Stabilisers Preservatives Caramel
Orange Mango Banana
10 10 20
10 20 10
20 10 10
60 60 60
Input prices per tonne:
Emulsifiers - $150.00
Stabilisers - $60
Preservatives - $120.00
Caramel - $10.00
Maximum available pin tonnes per Month: Emulsifiers – 1 200
Stabilisers – 2000
Preservatives – 2200
Caramel – No limit.
The three flavours will be sold in bulk to local hospitals at the prices shown below:
Orange - $83.00
Mango - $81.00
Banana - $81.00
Other variable manufacturing costs for each flavour excluding the above materials, are $11.00 per tonne.
Required:
Formulate a Linear programming model so that the company may maximise contribution and solve it using the Simplex Method. Fully Interpret your Final Tableau.
Probability and Statistics for Engineers and Scientists
ISBN: 978-0495107576
3rd edition
Authors: Anthony Hayter