Yerba Buena Tea is a manufacturer and wholesaler of high-quality tea product. Spiced chain is becoming increasingly popular among young consumers, and Yerba Buena offer two chai products; spiced chai powder mix and spiced chai team concentrate. An older production facility costs $190 per hour to operate and, for each hour of operation, can product 295 ounces of the powder mix and 260 ounces of the tea concentrate. Because of its age, the old facility cannot operate longer than 8 consecutive hours at a time. A newer facility costs $260 per hour to operate and produces 385 ounces of the powder mix and 375 ounces of the tea concentrate per hour. Yerba Buena also owns a small, single-purpose facility that costs $150 per hour to operate and produces 250 ounces of the power mix per hour. Several coffee shops have placed orders for a total of 5,500 ounces of the chai powder mix and 4,000 ounces of the tea concentrate. Anika Patel, the general manager at Yerba Buena, has none of the two products left in inventory and needs to decide how many hours to operate each facility to fulfill the orders while minimizing the production cost. Formulate the problem into an LP model for Yerba Buena. 1. What is the minimal cost to manufacture the Powder Mix and Tea Concentrate and meet the inventory demand?
2. How many hours are to be worked at each factory?
a. Factory 1 (Old)?
b. Factory 2 (New)?
c. Factory 3 (Special)?
3. Show a screenshot of how you setup and solved the problem: