Maximum possible revenue from the inventory

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Reference no: EM13110605

Groovy Juice Mixers, Inc. : Groovy Juice Mixers, Inc. mixes specialty drinks out of apple, guava, and papaya juices. Currently it has 1100, 600, and 500 gallons of each of these kinds of juices in inventory, respectively.

Groovy currently has two products, Tropical Breeze and Guava Jive, which sell for \$2.00 and \$2.10 per gallon, respectively.

Tropical Breeze is a mixture of all three ingredients that consists of 20% to 30% guava juice, and also 25% to 35% papaya juice.

Guava Jive consists at least 45% and at most 50% guava. It does not have to contain papaya juice, but if it does, it may be at most 10% papaya.

Assume inventory is a sunk cost, and that the costs of mixing are negligible. Therefore, Groovy's goal is to obtain the maximum possible revenue from the inventory on hand.

To do this problem you will need 6 Decision Variables:

TA = Number of Gallons of Apple Juice Used in Tropical Breeze

TG = Number of Gallons of Guava Juice Used in Tropical Breeze

TP = Number of Gallons of Papaya Juice Used in Tropical Breeze

GA = Number of Gallons of Apple Juice Used in Guava Jive

GG = Number of Gallons of Guava Juice Used in Guava Jive

GP = Number of Gallons of Papaya Juice Used in Guava Jive

Find each of the following: TA =

TG = 312

TP =

GA =

GG =

GP = 64

Total Revenue =

(Leave off \$ sign and commas)

Hint: Total Revenue is between 4424 and 4544

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