Blending Craft Beer

Problem Definition

Duff Beer is an american brewery that sells alcoholic beverages worldwide. Duff beer has a very large market share in the US. One of the new business lines of Duff Beer is in the craft beer sector. Duff beer buys 3 types of wort from local suppliers. The availability of wort (in liters) and the price for each of them is specified in Table 1.

Table 1: daily availability and cost of wort

Wort

Availability (liters)

Cost (€cents/liter)

Type 1

2500

120

Type 2

1200

095

Type 3

2000

150

The blend of the three types of wort must comply with the following quality requirements:

  • For Beer Angels, no less than 60% of Type 3 and no more of 20% of Type 2. The price of one bottle of Beer Angel is 4.10€s/liter.

  • For Beer Beast, no less than 15% of Type 3 and no more than 60% of Type 2. The price of one bottle of Beer Beast is 2.80€s/liter.

  • For Beer Cactus, no more than 50% of type 2. The selling price is 2.45 €/liter.

Write a linear program to find the most profitable blend of wort to elaborate the three kinds of beers