The Food Max grocery store sells three brands of milk in half-gallon cartons—its own brand, a local dairy brand, and a national

Question

3 years ago

12

The Food Max grocery store sells three brands of milk in half-gallon cartons—its own brand, a local dairy brand, and a national

brand. The profit from its own brand is $0.97 per carton, the profit from the local dairy brand is $0.83 per carton, and the profit from the national brand is SO.69 per carton. The total refrigerated shelf space allotted to half-gallon cartons of milk is 36 square feet per week. A half-gallon carton takes up 16 square inches of shelf space. The store manager knows
that each week Food Max always sells more of the national brand than of the local dairy brand and its own brand combined and at least three times as much of the national brand as its own brand. In addition, the local dairy can supply only 10 dozen cartons per week. The store manager wants to know how many half-gallon cartons of each brand to stock each week in order to maximize profit.

a. Formulate a linear programming model for this problem.
b. Solve this model by using the computer.

Business