Linear Programming: Model Formulation

A Blending Problem OceanJuice produces both a cranberry juice cocktail and a raspberry-cranberry blend. Each day OceanJuice can receive up to 1000 gallons of a raspberry concentrate that costs $2.00 per gallon, up to 4000 gallons of cranberry concentrate that costs $1.20 per gallon, and up to 500 pounds pure cane sugar that costs $0.30 per pound. Purified water, which is in unlimited supply, costs OceanJuice $0.08 per gallon. The cranberry juice cocktail is 25% cranberry concentrate and 75% water. The raspberry-cranberry blend is 20% raspberry concentrate, 15% cranberry concentrate, and 65% water. The cranberry juice uses 6 ounces of sugar per gallon juice produced. The raspberry-cranberry blend uses 4 ounces of sugar per gallon juice produced.

The juices are bottled in glass containers costs $0.05 each. Other cost including labor and packaging amount to $0.15 per quart for the cranberry juice cocktail and $0.18 per quart for the raspberry-cranberry blend. The minimum daily required production is 10,000 quarts of cranberry juice cocktail and 8,000 quarts of the raspberry-cranberry blend. The total daily production capacity is 50,000 quarts. OceanJuice sells the cranberry juice cocktail to stores for $0.75 per quart and the raspberry blend for $0.95 per quart.

Formulate a linear programming model that specifies the daily production schedule that will maximize profit.