Linear programming model-what is the contribution profit

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Reference no: EM131275343

Romans Food Market, located in Saratoga, New York, carries a variety of specialty foods from around the world. Two of the stores leading products use the Romans Food Market name: Romans Regular Coffee and Romans DeCaf Coffee. These coffees are blends of Brazilian Natural and Columbian mild coffee beans, which are purchased from a distributor from New York City. Because Romans purchases large quantities the coffee beans may be purchased om an as need basis for the price of 10% higher than the market price the distributor pays for the beans. The current market price is $0.47 per pound for Brazilian Natural and $0.62 per pound for Columbian Mild The composition of each coffee blend are as follows:

Blend

Bean Regular DeCaf

Brazilian Natural 75% 40%

Columbian Mild 25% 60%

Romans sells the regular blend for $3.60 per pound and the Decaf blend for $4.40 per pound. Romans would like to place an order for the Brazilian and Columbian coffee beans that will enable the production of 1000 pounds of Romans Regular coffee and 500 pound of Romans DeCaf coffee. The production cost is $0.80 per pound for the Regular blend. Because of the extra steps required to produce DeCaf, the production cost for the DeCaf blend is $1.05 per pound. Packaging costs for both products are $0.25 per pound. Formulate a linear programming model that can be used to determine the pounds of Brazilian Natural and Columbian Mild that will maximize the total contribution to profit. What is the optimal solution and what is the contribution profit??

Reference no: EM131275343

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