Reference no: EM133152481
EL BOOZO, a gin importer, bottles three blends, the Beafmonger, the Tanqued-Up and the Vallantine's, sold at respective prices of $34, $28.50 and $22.50 a bottle. These mixtures are produced from three gins that the company imports, type A gin, type B gin and gin from type C. Although the market for these three gin blends is very large, the company EL-BOOZO cannot import each month more than the quantities authorized by the regulations of the imports. These maximum quantities as well as the purchase prices of imported gins are given in the table below:
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gin imported
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Maximum permitted quantity of bottles
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Purchase price per bottle
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A
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2800
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35$
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B
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3300
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25$
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C
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2000
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20$
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The three mixtures are composed as follows:
• The Beafmonger must contain no less than 65% type A imported gin, no more than 25% imported type C gin (no restriction on imported type B gin in this blend);
• The Tanqued-Up must contain no less than 20% type A imported gin, no more than 55% imported type C gin (no restriction on imported type B gin in this blend);
• Vallantine's must contain no more than 50% imported Type C gin (no restrictions on imported type A and B gins in this blend).
a) Formulate the linear program model to help EL BOOZO determine the amount of each of the mixtures to be produced and their composition in order to maximize the contributions to the benefits and give the optimal solution.
b) Calculate for each of the mixtures the manufacturing cost per bottle for the composition more favorable to the importer.
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: EL BOOZO, a gin importer, bottles three blends, the Beafmonger, the Tanqued-Up and the Vallantine's, sold at respective prices of $34, $28.50 and $22.50 a bottl
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