The International Chef, Inc. markets three blends of oriental tea: premium, Duke Grey, and breakfast. The firm uses tea leaves from India, China and new domestic California sources.
Tea Leaves (%)
Quality Indian Chinese California
Premium 40 20 20
Duke Grey 20 30 40
Breakfast 40 40 40
Net profit per pound for each blend is $.50 for premium, $.30 for Duke Grey, and $.20 for breakfast. The firm's regular weekly supplies are 20,000 pounds of Indian tea leaves, 22,000 pounds of Chinese tea leaves, and 16,000 pounds of California tea leaves. Develop and solve a linear optimization model to determine the optimal mix to maximize profit, and write a short memo to the president, Kathy Chung, explaining the sensitivity information in language that she can understand.