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The Whitewave dairy company produces two cheese spreads by blending mild cheddar cheese with extra sharp cheddar cheese. The cheese spreads are packaged in 1.5 pound containers, which are then sold to distributors throughout the Northeast.

The Regular blend must have at least 15% extra sharp cheddar, and the Zesty blend must contain at least 27% extra sharpcheddar. The company has orders for 3500 containers of Regular and 4500 containers of Zesty.

This year, a local dairy cooperative offered to provide up to 7600 pounds of cheese blend 1 for $1.15 per pound and up to 8900 pounds of cheese blend 2 for $1.55 per pound. Cheese blend 1 consists of 90% mild cheddar and 10% extra sharp while cheese blend 2 consists of 65% mild and 35% extra sharp.

The cost to blend and package the cheese spreads, excluding the cost of the cheese, is $0.18 per container. If each container of Regular is sold for $1.95 and each container of Zesty is sold for $2.20, how many containers of Regular and Zesty should New England Cheese produce? Formulate a Linear Programming model to determine these amounts.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92704555

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