Question 2 options: Groovy Juice Mixers, Inc . Groovy Juice Mixers, Inc. mixes s

Question

Question 2 options:

Groovy Juice Mixers, Inc.


Groovy Juice Mixers, Inc. mixes specialty drinks out of apple, guava, and papaya juices. Currently it has 1200, 900, and 600 gallons of each of these kinds of juices in inventory, respectively.


Groovy currently has two products, Tropical Breeze and Guava Jive, which sell for $1.90 and $2.00 per gallon, respectively.


Tropical Breeze is a mixture of all three ingredients that consists of 15% to 20% guava juice, and also 15% to 20% papaya juice.


Guava Jive consists at least 45% and at most 55% guava. It does not have to contain papaya juice, but if it does, it may be at most 10% papaya.


Assume inventory is a sunk cost, and that the costs of mixing are negligible. Therefore, Groovy's goal is to obtain the maximum possible revenue from the inventory on hand.


To do this problem you will need 6 Decision Variables:

TA = Number of Gallons of Apple Juice Used in Tropical Breeze
TG = Number of Gallons of Guava Juice Used in Tropical Breeze
TP = Number of Gallons of Papaya Juice Used in Tropical Breeze

GA = Number of Gallons of Apple Juice Used in Guava Jive
GG = Number of Gallons of Guava Juice Used in Guava Jive
GP = Number of Gallons of Papaya Juice Used in Guava Jive

Explanation / Answer

Total Sales Revenue is 4828.8$

TA = Number of Gallons of Apple Juice Used in Tropical Breeze = 796.2 Gallons

TG = Number of Gallons of Guava Juice Used in Tropical Breeze = 265.4 Gallons
TP = Number of Gallons of Papaya Juice Used in Tropical Breeze = 265.4 Gallons

Total Gallons of Tropical Jive = 796.2 + 265.4 + 265.4 = 1326.9 Gallons

GA = Number of Gallons of Apple Juice Used in Guava Jive = 403.8 Gallons
GG = Number of Gallons of Guava Juice Used in Guava Jive = 634.6 Gallons
GP = Number of Gallons of Papaya Juice Used in Guava Jive = 115.4 Gallons

Total Gallons of Guava Jive = 403.8 + 634.6 + 115.4 = 1153.8 Gallons

Sales = 1326.9*1.9 + 1153.8*2 = $4828.8

The workings is given Below

Tropical Breeze Guava Jive Used Inventory Inventory Apple 796.2 403.8 1200.0 1200.0 Guava 265.4 634.6 900.0 900.0 Papaya 265.4 115.4 380.8 600.0 Gallons 1326.9 1153.8 Conditions Tropical Breeze Guava Jive Guava 199.0(15%) 265.4(20%) 519.2(45%) 634.6(55%) Papaya 199.0(15%) 265.4(20%) 115.4(10%)

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