SLIDE 12 MAT 141 ‐ Chapter 3 12
Flower Arranging
Example: At the end of every month, after filling orders for its regular customers, a coffee company has some pure Colombian coffee and some special-blend coffee remaining. The practice of the company has been to package a mixture of the two coffees into 1-pound packages as follows: a low-grade mixture containing 4 ounces of Colombian coffee and 12 ounces of special-blend coffee and a high-grade mixture containing 8 ounces of Colombian and 8 ounces of special-blend
- coffee. A profit of $0.30 per package is made on the low-grade
mixture, whereas a profit of $0.40 per package is made on the high- grade mixture. This month, 120 pounds of special-blend coffee and 100 pounds of pure Colombian coffee remain. How many packages of each mixture should be prepared to achieve a maximum profit? Assume that all packages prepared can be sold.
(a) Write an objective functions. , 0.30 0.40
Flower Arranging
(b) Write down the constraints. 4 8 1600 12 8 1920 (c) Graph the feasible region.
Flower Arranging
(d) Find the corner points. (e) Substitute the corner points into the objective function.
Insurance
Example: A company is considering two insurance premium plans with the types of coverage and premiums shown in the following figure. The company wants at least $300,000 fire/theft insurance and at least $3,000,000 liability insurance from these plans. How many of each type should they buy to minimize the cost?
(a) Write an objective functions. , 50 40
*This means $50 buys you one unit of Policy A, giving you $10,00 fire/theft coverage and $180,000 liability coverage.