Question: 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 ( Percent)

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 $.050 ?? for premium, $0.30 for Duke Grey, and $0.20 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.

Note: Should the net profit of premium tea be $0.5? I used $0.5. Let me know if I am wrong, thanks !

Price: $2.99

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Deliverable: Word Document