Tutorial Two
Tutorial Two
(4) There are two coffee machines at the Coffee for Fun Company Ltd that blends three types of coffee. The first type
is Light Coffee, second type is Strong Coffee, and the third type is Casual Coffee. At each machine, the coffee is
blended in a single production run so the three types are blended in fixed proportions. The first machine (Machine
Beta) produces 1 kg of Light Coffee, 2 kg of Strong Coffee, and 3 kg of Casual Coffee in a single operation, and it
charges $60 for what is blended in one operation. The second machine (Machine Zeta) blends 1 kg of Light Coffee, 5
kg of Strong Coffee, and 1 kg of Casual Coffee, and it charges $100 for what it blends in one operation. If a customer
wants at least 100 kg of Light Coffee, 260 kg of Strong Coffee, and 180 kg of Casual Coffee, respectively, then how
many production runs should be ordered from each machine to minimize costs? What is the minimum cost?
(5) A retired couple has up to $30,000 to invest in fixed-income securities. Their broker recommends investing in two
bonds: one AAA bond yielding 8%; the other a B+ bond paying 12%. After some consideration, the couple decides to
invest at most $12000 in the B+ rated bond and at least $6000 in the AAA bond. They also want the amount invested
in the AAA bond to exceed or equal the amount invested in the B + bond. What should the broker recommend if the
couple wish to maximize their return on investment?
(6) Quality Carpet manufacturers has available 1200 square meters of wool and 1000 square meters of nylon for the
manufacturing of two grades of carpets: high-grade, which sells for $500 per roll, and low-grade, which sells for $300
per roll. 20 square meters of wool and 40 square meters of nylon are used in a roll of high-grade carpet, and 40 square
meters of nylon are used in a roll of low-grade carpet. 40 work hours are required to manufacture each roll of high-
grade carpet and 20 work hours are required for each roll of low-grade carpet. A maximum of 800 work hours are
available. Calculate the optimum quantity of high-grade and low-grade of carpets that needs to be manufactured to
maximize sales revenue
10𝑤1+10𝑤2≥4
𝑤1≥0,𝑤2≥0
3𝑥1 + 3𝑥2≥30
𝑥1≥0,𝑥2≥0
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