Determine the optimal production plan

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Reference no: EM132098005

The Whitewave dairy company produces three cheese spreads- Regular, Zesty and Superior. The cheese spreads are packaged in 4 pound containers, which are then sold to distributors throughout the Northeast. The Regular blend must have at least 5% extra sharp cheddar, the Zesty blend must contain at least 24% extra sharp cheddar and the Superior blend must contain at least 30% extra sharp cheddar. The company has orders for 3500 containers of Regular, 4500 containers of Zesty and 1000 containers of Superior.

This year, a local dairy cooperative offered to provide the ingredients that will be used in the production process. They can offer up to 7600 pounds of ingredient 1 for $1.15 per pound and up to 8900 pounds of ingredient 2 for $1.55 per pound. Ingredient 1 consists of 85% mild cheddar and 15% extra sharp while ingredient 2 consists of 45% mild and 55% extra sharp.

The cost to blend and package the cheese spreads, excluding the cost of the cheese, is $0.18 per container. Each container of Regular is sold for $1.95, each container of Zesty is sold for $2.20 and each container of Superior is sold for $3.10

Formulate a Linear Programming model to determine the optimal production plan.

Reference no: EM132098005

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