Question: Problem 2. (Baker) Hill-O-Beans Coffee Company blends four component beans into three final blends of coffee. One is sold to luxury hotels, another to restaurants

Problem 2. (Baker) Hill-O-Beans Coffee Company

Problem 2. (Baker) Hill-O-Beans Coffee Company blends four component beans into three final blends of coffee. One is sold to luxury hotels, another to restaurants and the third to supermarkets for store-label brands. The company has four reliable bean supplies: Argentine Abundo, Peruvian Colmado, Brazilian Maximo and Chilean Saboro. The table below summa- rizes the very precise recipes for the final coffee blends, the cost and availability information for the four components and the wholesale price per lb of the final blends. The percentages indicate the fraction of each component to be used in each blend. Component Hotel Restaurant Supermarket Cost Weekly ($/lb) availability (lbs) Argentine Abundo 20% 35% 20% 0.60 40.000 Peruvian Colmado 40% 15% 25% 0.80 25,000 Brazilian Maximo 15% 20% 40% 0.55 20.000 Chilean Saboro 25% 30% 15% 0.70 45,000 Wholesale price ($/lb) 1.40 1.50 1.25 The processor's plant can handle no more than 105,000 lbs per week and Hill-O-Beans would like to operate at capacity. There is no problem in selling the final blends although the marketing department requires minimum production levels of 10,000, 25,000 and 30,000 lbs respectively for the hotel, restaurant and supermarket blends. Formulate a linear program to maximize the weekly profit of Hill-O-Beans

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