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Holiday Fruit Company buys oranges and processes them into gift fruit baskets and fresh juice. The company grades the fruit it buys on a scale from 1 (lowest quality) to 5 (highest quality). The following summarizes Holiday's current inventory of fruit:
Grade
1
2
3
4
5
Supply (1000s of lbs)
90
225
300
100
75
Each pound of oranges devoted to fruit baskets results in a marginal profit of $2.50, whereas each pound of devoted to fresh juice results in marginal profit of $1.75. Holiday wants the fruit in its baskets to have an average quality grade of at least 3.75 and its fresh juice to have an average quality grade of at least 2.50.
a) Formulate an optimization model for this problem.
b) Implement your model in a spreadsheet and solve it.
c) What is the optimal solution?
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