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PROBLEM #1
A small candy shop is preparing for the holiday season. The owner must decide how many bags
of deluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe
mix has 2/3 pound raisins and 1/3 pound peanuts, and the standard mix has 1/2 pound raisins
and 1/2 pound peanuts per bag. The shop has 90 pounds of raisins and 60 pounds of peanuts to
work with.
Peanuts cost $.60 per pound and raisins cost $1.50 per pound. The deluxe mix will sell for $2.90
per pound, and the standard mix will sell for $2.55 per pound. The owner estimates that no more
than 110 bags of one type can be sold.
If the goal is to maximize profits, how many bags of each type should be prepared? What is the
expected profit?
Decision Variables:
X1 = number of bags of deluxe mix to prepare for the holiday season
X2 = number of bags of regular mix to prepare for the holiday season
(Turn Over)
Objective Function:
Profit = revenue – cost
Cost of one bag of deluxe mix = (2/3) * $1.5 + 1/3 * $0.60= $1.20 / Bag
Cost of one bag of regular mix = (1/2) * $1.5 + 1/2 * $0.60= $1.05 / Bag
Profit of one bag of deluxe mix = $2.9 - $1.20 = $1.7 / Bag
Profit of one bag of regular mix = $2.25 - $1.05 = $1.2 / Bag
Constraints:
x1 , x2 >= 0
PROBLEM #2
A retired couple supplement their income by making fruit pies, which they sell to a local grocery
store. During the month of September, they produce apple and grape pies. The apple pies are
sold for $1.50 to the grocer, and the grape pies are sold for $1.20. The couple is able to sell all of
the pies they produce owing to their high quality. They use fresh ingredients. Flour and sugar
are purchased once each month. For the month of September, they have 1,200 cups of sugar and
2,100 cups of flour. Each apple pie requires 1½ cups of sugar and 3 cups of flour, and each
grape pie requires 2 cups of sugar and 3 cups of flour.
Determine the number of grape and the number of apple pies that will maximize revenues if the
couple working together can make an apple pie in six minutes and a grape pie in three minutes.
They plan to work no more than 60 hours.
Optimum
A = 500 pieces
G = 200 pieces
Revenue = $990
Unused supplies