question archive The Coastal Tea Company sells 60-pound bags of blended tea to restaurants
The Coastal Tea Company sells 60-pound bags of blended tea to restaurants
Subject:ManagementPrice: Bought3
The Coastal Tea Company sells 60-pound bags of blended tea to restaurants. The company makes the blend using Carolina grown tea and regular tea. To be able to label the tea as South Carolina Tea, each bag need to contain at least 55% of Carolina Tea, I.e., 33 pounds. The blended tea need to achieve an aroma rating of at least 1.65. The Carolina grown tea has an aroma rating of 2, and the regular tea has an aroma rating of 1.2. Carolina grown tea costs $1.80 per pound, and the regular tea costs $0.60 per pound. Determine the best mix of Carolina and regular tea to achieve Coastal Tea Company's blending goal, while keeping the costs as low as possible. Formulate the LP problem. (X_1 = number of pounds of Carolina grown tea In each 60-pound bag, X_2 -number of pounds of regular tea in each 60-pound bag) Provide the graphical solution to this problem following the procedure discussed in class. At the optimal solution, which constraint Is not binding, what is the value of the slack or surplus? Provide an economic interpretation of the slack or surplus value.
