Math Problem Statement

Sunrise company supplies milkshakes with three flavors including matcha, earl grey, and strawberry. The demand for milkshake rapidly increased due to the high temperature and summer holiday started. Unfortunately, the inventory levels of ingredients of milk, cream, and sugar are a bit lower to meet the demand and their supplier is unable to replenish immediately. Shop manager, Tony, is going to maximize the profit by planning the certain amount of each flavor of milkshakes to produce before replenishment.

The profit generated by matcha, earl grey, and strawberry milkshakes are $2.7, $2.6, and $2.5 per liter sold. Tony just checked the inventory left of milk, cream, and sugar are 65 liters (L), 45 liters (L), and 32 kilograms (KG) respectively. Moreover, each cup consumes 0.3 L milk for the two tea flavors and 0.27 L for strawberry. It consumes 0.20 L, 0.19 L, and 0.23 L for cream, as well as 0.1 KG, 0.08 KG, 0.15 KG for sugars. Tony found that 1L of cream has a bit unpleasant odor and so discarded then. Will the optimal solution change and what can be said about the effect on total profit?

Solution

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Math Problem Analysis

Mathematical Concepts

Linear Programming
Optimization
Shadow Prices

Formulas

Profit = (profit per liter of Matcha * liters of Matcha produced) + (profit per liter of Earl Grey * liters of Earl Grey produced) + (profit per liter of Strawberry * liters of Strawberry produced)
Shadow price = change in objective value / change in the resource availability

Theorems

Sensitivity Analysis
Linear Programming Theorems

Suitable Grade Level

Undergraduate (Math/Operations Research)