Mathematics: Linear Optimization
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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.
Tea Leaves (Percent)
Quality Indian Chinese California
Premium 40 20 20
Duke Grey 20 30 40
Breakfast 40 40 40
Net profit per pound for each blend is $0.50 for premium, $0.30 for Duke Grey, and $0.20 for breakfast. The firm's regular 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.
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