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SWEET FRUIT CO (SF) mixes specialty drinks out of grape, guava, and papaya juices. Currently it has 1000, 400, and 300 gallons of each of these kinds of juices in inventory, respectively. SF currently has two products, Tropical Breeze and Guava Jive, which sell for $1.30 and $1.50 per gallon, respectively. Tropical Breeze is a mixture of all three ingredients that consists of 20% to 25% guava juice, and also 20% to 25% papaya juice. Guava Jive consists at least 40% and at most 50% guava. It does not have to contain papaya juice, but if it does, it may be at most 5% papaya. Assume inventory is a sunk cost, and that the costs of mixing are negligible. Therefore, SF's goal is to obtain the maximum possible revenue from the inventory on hand. Formulate this problem as an LP. Give clear definitions of your decision variables. Explain your constraints (if there are several analogous constraints, explain one).

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M93089583

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