Holiday fruit company buys oranges and processes them into


Holiday Fruit Company buys oranges and processes them into gift fruit baskets and fresh juice. The company grades the fruit it buys on a scale from 1 (lowest quality) to 5(highest quality). The following table summarizes Holiday 's current inventory of fruit.
Grade Supply(1000s of lbs)
1 90
2 225
3 300
4 100
5 75
Each pound of oranges devoted to fresh juice results in a marginal profit of $2.50, whereas each pound devoted to fresh juice results in a marginal profit of $1.75. Holiday wants the fruit in its baskets to have an average quality grade of at least 3.75 and its fresh juice to have a average quality grade of at least 2.50.

a. formulate an optimization model for this problem.

b. Implement your model in a spreadsheet and solve it .

c. what is the optimal solution.

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Econometrics: Holiday fruit company buys oranges and processes them into
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