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Linear Optimization: The international Chef, Inc.

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The international Chef, Inc markets three blends of oriental tea: premium, Duke Grey and Breakfast. THe firm uses tea leaves from India, China, and new domestic California sources. Net profit per pound for each blend is $.50 for premium, $.30 for Duke Grey, and $.20 forbreakfast. The firmsregular weekly supplies are 20,000 pounds of Indian tea leaves, 22,000 pounds of chinese tea leaves, and 16,000 pounds of california tea leaves. Develop and solve a linear optimization model to determine the optimal mix to maximize profit and write a short memo to the president Kathy Chung explaining the sensitivity information in language that she can understand.

Tea Leaves Percent
Indian Chinese California
Premium 40.00% 20.00% 20.00%
Duke Grey 20.00% 30.00% 40.00%
Breakfast 40.00% 40.00% 40.00%

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Solution Summary

A detailed Linear Optimization has been performed in EXCEL. Interpretation of the results is provided for the student to use to write a short memo.

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