Question: XYZ COMPANY

XYZ Company produces three products, A, B and C. The company has 17 tons of raw materials available for this year. Product A requires 0.21 tons of raw material to make a case of product, Product B requires 0.24 tons to make a case, and Product C requires 0.18 tons per case. The Company has enough storage space for 80 cases of product.

The Company has 2,500 hours of production capacity, and it requires 12 hours to produce a case of Product A, 14.5 hours to produce a case of B and, and 16 hours to produce a case of C. From past sales the vineyard knows that the demand for the C will be no more than half of the sales of the other two Products combined. The profit for a case of A is $7.500, the profit for a case of B is $8,200, and the profit for a cask of C is $10,500.

a. Formulate a linear programming model for this problem.

b. Solve this problem by using the computer (computer solution).