A Coffee shop is doing an analysis on their end of year report. The supervisor tracks the sales of their two best seller products over 3 months. He is trying to decide on how to maximize the profits of Folgers and Peets. After 3 months, the Shop decided to revisit the constraints that they had initially and tried out a second business model to decide which brand gave most profit. by using a linear programming model: Brand Cost Price Selling price Folgers $5 $8 Starbucks $10 $16 a)Represent the constraints as a set of inequalities. represent the constraints graphically and determine the feasible region. b)Determine the Objective Profit Function, the maximum profit and the quantity of items needed to ensure maximum profit. c)Compare two models to determine which model ensures maximum profit. Based on a monthly budget of $10, 000 and storage restrictions, there are several constraints that must be adhered to. Model 1: 1. He purchases at least 600 bottles(25 cases) of Starbucks. 2. He purchases at least 240 Bottles(10 cases) of 355ml Folgers. 3. He has a budget of $10,000 4, The number of Starbucks should be at least twice the amount of folgers. Model 2: 1. He purchases at least 600 bottles(25 cases) of Starbucks. 2. He purchases at least 240 Bottles(10 cases) of 355ml Folgers. 3. He has a budget of $10,000
1. A Coffee shop is doing an analysis on their end of year report. The supervisor tracks the sales of their two best seller products over 3 months. He is trying to decide on how to maximize the profits of Folgers and Peets. After 3 months, the Shop decided to revisit the constraints that they had initially and tried out a second business model to decide which brand gave most profit. by using a linear programming model:
Brand | Cost Price | Selling price |
Folgers | $5 | $8 |
Starbucks | $10 | $16 |
a)Represent the constraints as a set of inequalities. represent the constraints graphically and determine the feasible region.
b)Determine the Objective Profit Function, the maximum profit and the quantity of items needed to ensure maximum profit.
c)Compare two models to determine which model ensures maximum profit.
Based on a monthly budget of $10, 000 and storage restrictions, there are several constraints that must be adhered to.
Model 1:
1. He purchases at least 600 bottles(25 cases) of Starbucks.
2. He purchases at least 240 Bottles(10 cases) of 355ml Folgers.
3. He has a budget of $10,000
4, The number of Starbucks should be at least twice the amount of folgers.
Model 2:
1. He purchases at least 600 bottles(25 cases) of Starbucks.
2. He purchases at least 240 Bottles(10 cases) of 355ml Folgers.
3. He has a budget of $10,000
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