The owner of Artisanal Chips etc. produces three flavors of artisanal corn chips marketed at new college graduates — pumpkin (P), chipotle adobo (C) and basement (B). He has a limited amount of the three ingredients used to produce these chips available for his next production run: 1,000 ounces of salt, 2,000 ounces of maize, and 1,200 ounces of herbs. A bag of pumpkin chips requires 2 ounces of salt, 6 ounces of maize, and 2 ounces of herbs to produce; while a bag of chipotle-adobo chips requires 6 ounces of salt, 6 ounces of maize, and 5 ounces of herbs. A bag of basement chips requires 2 ounces of salt, 3 ounces of maize, and 4 ounces of herbs. Profits for a bag of basement chips are $1, for chipotle-adobo chips is $0.60, and for a bag of pumpkin chips $0.50.   Formulate an LP that maximizes the profit of making chips using the resources on hand.

MARKETING 2018
19th Edition
ISBN:9780357033753
Author:Pride
Publisher:Pride
Chapter14: Marketing Channels And Supply Chain Management
Section14.1: Taza Cultivates Channel Relationships With Chocolate
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The owner of Artisanal Chips etc. produces three flavors of artisanal corn chips marketed at new college graduates — pumpkin (P), chipotle adobo (C) and basement (B). He has a limited amount of the three ingredients used to produce these chips available for his next production run: 1,000 ounces of salt, 2,000 ounces of maize, and 1,200 ounces of herbs. A bag of pumpkin chips requires 2 ounces of salt, 6 ounces of maize, and 2 ounces of herbs to produce; while a bag of chipotle-adobo chips requires 6 ounces of salt, 6 ounces of maize, and 5 ounces of herbs. A bag of basement chips requires 2 ounces of salt, 3 ounces of maize, and 4 ounces of herbs. Profits for a bag of basement chips are $1, for chipotle-adobo chips is $0.60, and for a bag of pumpkin chips $0.50.

 

Formulate an LP that maximizes the profit of making chips using the resources on hand.

(Note that write down your whole LP.)

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